Question

Increasing Net Savings
A 2-column table has 9 rows. The first column is labeled monthly expenses with entries rent, utilities phone internet, groceries, entertainment, renters insurance, car/insurance/gas, discretionary spending, total expenditures, net savings. The second column is labeled amount budgeted with entries 600, 230, 300, 50, 20, 475, 75, 1,850, 100 dollars.
You have decided to set a new goal of saving at least $4,500 over the course of the next year.

You already have $900 saved.

By how much would you need to increase your monthly net savings in order to meet this goal?

$100
$150
$200
$250

Answer 1

Current monthly net savings = $100 → annual = $100 × 12 = $1,200.
You already have $900, so with the current plan you'll have $900 + $1,200 = $2,100 in a year.
Shortfall = $4,500 − $2,100 = $2,400.
Required increase per month = $2,400 ÷ 12 = $200.

Answer: $200.