miguel's net monthly income is $4,700.use his monthly expenses to answer this questions

Question

1) calculate Miguel's housing budget what is 30% of Miguel's net monthly income ?
2)Miguel's rent spending is over or under budget by how much?
3) calculate Miguel's transportaion budget what is 11% of Miguel's net monthly income?
4)Miguel's transportation spending is over or under budget by how much?

Miguel's monthly expenses :
rent-$1,250
car-$700
monthly spending guidelines :
housing - 30%
transportation - 11%

Answer 1

To answer the questions regarding Miguel's budget, let's break it down step by step.

1. Calculate Miguel's housing budget (30% of his net monthly income): \[ \text{Housing budget} = \text{Net monthly income} \times 0.30 = 4,700 \times 0.30 = 1,410 \]

   Miguel's housing budget is $1,410.

2. Determine if Miguel's rent spending is over or under budget and by how much: \[ \text{Rent spending} = 1,250 \] \[ \text{Difference} = \text{Rent spending} - \text{Housing budget} = 1,250 - 1,410 = -160 \]

   Since the difference is negative, it means Miguel is under budget by $160 for housing.

3. Calculate Miguel's transportation budget (11% of his net monthly income): \[ \text{Transportation budget} = \text{Net monthly income} \times 0.11 = 4,700 \times 0.11 = 517 \]

   Miguel's transportation budget is $517.

4. Determine if Miguel's transportation spending is over or under budget and by how much: \[ \text{Transportation spending} = 700 \] \[ \text{Difference} = \text{Transportation spending} - \text{Transportation budget} = 700 - 517 = 183 \]

   Since the difference is positive, it means Miguel is over budget by $183 for transportation.

In summary:

1. Miguel's housing budget is $1,410.
2. Miguel's rent spending is under budget by $160.
3. Miguel's transportation budget is $517.
4. Miguel's transportation spending is over budget by $183.