Willie earns about $2,500 per month in income as a teacher. His monthly plan is below.

Question

Cell Phone Bill $120.00
Rent $830.00
Car Payment $450.00
Car/Renter's Insurance $200.00
Groceries/Hygiene $200.00
Entertainment $150.00
Utilities $250.00
Savings $300.00

Willie would like to use what he saves to take a cruise to the Bahamas during summer break. He figures he’ll need $1,000 for the cruise ticket and $500 in spending money. If Willie follows his budget, how long will it take him to save for his vacation?
Responses
A 5 months5 months
B 4 months4 months
C 1 year1 year
D 2 months

Answer 1

To determine how long it will take Willie to save for his vacation, we need to first calculate his total savings per month and then see how long it will take him to reach his goal of $1,500 for the cruise.

Willie's monthly savings amount is given as $300.

He needs a total of:

• $1,000 for the cruise ticket
• $500 for spending money

So, total savings needed = $1,000 + $500 = $1,500.

Now, we need to find out how many months it will take to save $1,500 at a rate of $300 per month:

\[ \text{Months required} = \frac{\text{Total savings needed}}{\text{Monthly savings}} = \frac{1500}{300} = 5 \text{ months} \]

Thus, the answer is: A 5 months.