Question

Round any decimals to the nearest penny.
Your realized income is $36,864/yr. Your fixed and housing expenses are 32% and your savings are 15% of your realized income
per month. How much discretionary money do you have EXCLUDING savings per month?

Answer 1

First, we need to calculate the monthly realized income:

\[
\text{Monthly Income} = \frac{\text{Annual Income}}{12} = \frac{36,864}{12} = 3,072
\]

Next, we calculate the fixed and housing expenses, which are 32% of the monthly income:

\[
\text{Fixed and Housing Expenses} = 0.32 \times \text{Monthly Income} = 0.32 \times 3,072 = 983.04
\]

Now, we calculate the savings, which are 15% of the monthly income:

\[
\text{Savings} = 0.15 \times \text{Monthly Income} = 0.15 \times 3,072 = 460.80
\]

To find the total discretionary money available excluding savings, we need to subtract both the fixed and housing expenses and the savings from the monthly income:

\[
\text{Discretionary Money} = \text{Monthly Income} - \text{Fixed and Housing Expenses} - \text{Savings}
\]

\[
\text{Discretionary Money} = 3,072 - 983.04 - 460.80 = 1,628.16
\]

Thus, rounding to the nearest penny, the discretionary money available per month is:

\[
\boxed{1,628.16}
\]