Question
Predict how much money can be saved without having a negative actual net income.
Monthly Budget
Budgeted Amount
Actual Amount
Income
Wages
$1025
$675
Expenses
Rent
Utilities
Food
Cell Phone
Savings
$300
$100
$175
$75
$300
$300
$100
$200
$75
$____
Net Income
$75
$____
a.
It is not possible to save any money this month without having a negative actual net income.
b.
$350 can be saved resulting in an actual net income of $0.
c.
$200 can be saved resulting in an actual net income of $75.
d.
Because there is a $75 budgeted net income, that $75 can be put towards savings.
Monthly Budget
Budgeted Amount
Actual Amount
Income
Wages
$1025
$675
Expenses
Rent
Utilities
Food
Cell Phone
Savings
$300
$100
$175
$75
$300
$300
$100
$200
$75
$____
Net Income
$75
$____
a.
It is not possible to save any money this month without having a negative actual net income.
b.
$350 can be saved resulting in an actual net income of $0.
c.
$200 can be saved resulting in an actual net income of $75.
d.
Because there is a $75 budgeted net income, that $75 can be put towards savings.
Answers
GPT-4o mini
To determine how much money can be saved without having a negative actual net income, we need to calculate the actual net income and see how savings affect it.
1. **Calculate Actual Income:**
- Actual Income from Wages: $675
2. **Calculate Actual Expenses:**
- Rent: $300
- Utilities: $100
- Food: $200 (you noted this should be $200 instead of $175 in the actual amounts)
- Cell Phone: $75
- Total Actual Expenses = Rent + Utilities + Food + Cell Phone
- Total Actual Expenses = $300 + $100 + $200 + $75 = $675
3. **Calculate Actual Net Income:**
- Actual Net Income = Actual Income - Total Actual Expenses
- Actual Net Income = $675 - $675 = $0
Now, let's analyze the savings options:
- Budgeted Savings: $300, but we need to see how much can be saved while ensuring the actual net income does not go negative.
Since the current actual net income is $0, the maximum amount that can be saved without resulting in a negative net income is also $0. This means:
1. If you choose to save any money, it will affect your net income. For example:
- If you save $250, your net income would be $0 - $250 = -$250 (which is negative).
- If you save $100, your net income would be $0 - $100 = -$100 (which is negative).
- If you save $0, your net income remains $0.
Given these calculations, the correct answer is:
**a. It is not possible to save any money this month without having a negative actual net income.**
1. **Calculate Actual Income:**
- Actual Income from Wages: $675
2. **Calculate Actual Expenses:**
- Rent: $300
- Utilities: $100
- Food: $200 (you noted this should be $200 instead of $175 in the actual amounts)
- Cell Phone: $75
- Total Actual Expenses = Rent + Utilities + Food + Cell Phone
- Total Actual Expenses = $300 + $100 + $200 + $75 = $675
3. **Calculate Actual Net Income:**
- Actual Net Income = Actual Income - Total Actual Expenses
- Actual Net Income = $675 - $675 = $0
Now, let's analyze the savings options:
- Budgeted Savings: $300, but we need to see how much can be saved while ensuring the actual net income does not go negative.
Since the current actual net income is $0, the maximum amount that can be saved without resulting in a negative net income is also $0. This means:
1. If you choose to save any money, it will affect your net income. For example:
- If you save $250, your net income would be $0 - $250 = -$250 (which is negative).
- If you save $100, your net income would be $0 - $100 = -$100 (which is negative).
- If you save $0, your net income remains $0.
Given these calculations, the correct answer is:
**a. It is not possible to save any money this month without having a negative actual net income.**