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

Actual income = $900 + $25 = $925.
Actual expenses without savings = $400 + $80 + $200 + $75 = $755.
Let actual savings = x. Net = 925 − (755 + x) = 170 − x. To avoid a negative net, 170 − x ≥ 0 → x ≤ 170.

So you can save at most $170, giving actual net income $0. Answer: b.