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.