Question

With her new company, Annika has a two-year assignment living in a large city. The company will reimburse most of her expenses. Annika is using the Quantitative Reasoning Process to build a budget. Calculate Annika's estimated living expenses for the next two years using the following: Rent: $1,200 per month, Gym membership: $400 per year with a monthly fee of $35, Renters' insurance: $75 every 6 months, Groceries: $390 per month, and Eating out & entertaining: $250 per week. Assume 52 weeks in 1 year and 12 months in 1 year. (Round your answer to the nearest whole dollar)

Answer 1

Estimated expenses for next 2 years:

Rent = 1100 * 12 * 2 = 26,400

Gym membership = 450 * 2 = 900

Gym monthly fee = 40 * 12 * 2 = 960

Renter's insurance = 60 * (12 * 2 / 6) = 240

Groceries = 300 * 12 * 2 = 7200

Eating out & entertainment = 175 * 52 * 2 = 18,200

Total estimated living expenses = $53,900

Explanation: