Question

Predict how much money can be saved without having a negative actual net income.

Monthly Budget
Budgeted Amount
Actual Amount
Income
Wages
Savings Interest
$1150
$25
$900
$25
Expenses
Rent
Utilities
Food
Cell Phone
Savings

$400
$100
$250
$75
$200

$400
$80
$200
$75
$____
Net Income
$150
$____

a.
It is not possible to save any money this month without having a negative actual net income.
b.
$170 can be saved resulting in an actual net income of $0.
c.
$200 can be saved resulting in an actual net income of $150.
d.
As long as you are saving money, you will not have a negative actual net income.

Answer 1

To determine how much can be saved without having a negative actual net income, we first need to calculate the actual net income based on the information given.

1. **Calculate Total Income:**
- Wages: $900
- Savings Interest: $25
- **Total Income = $900 + $25 = $925**

2. **Calculate Total Expenses:**
- Rent: $400
- Utilities: $80 (actual, previously budgeted as $100)
- Food: $200 (actual, previously budgeted as $250)
- Cell Phone: $75 (actual, same as budgeted)
- Savings: (to be determined)
- **Total Expenses (excluding savings) = $400 + $80 + $200 + $75 = $755**

3. **Calculate Actual Net Income:**
- Actual Net Income = Total Income - Total Expenses
- We need to account for the savings amount (let's denote savings as S).
- Actual Net Income = $925 - ($755 + S)
- Actual Net Income = $925 - $755 - S
- Actual Net Income = $170 - S

Now, to ensure that the actual net income is not negative:

\[
170 - S \geq 0
\]

This means:

\[
S \leq 170
\]

Thus, the maximum amount that can be saved without going negative is $170.

So, the answer is:

**b. $170 can be saved resulting in an actual net income of $0.**