Question

Adam has recently obtained a loan with a monthly minimum payment of $30 dollars.

How will Adam’s net income change with the added expense?



What will be Adam’s total expenses now?

$

What will be Adam’s new net income?

$

Answer 1

I don’t have Adam’s original income or expense totals, but you can determine the effect directly:

- His net income will decrease by the monthly payment amount: $30 per month (or $360 per year).
- His total expenses will increase by $30 per month.
- His new net income = (old net income) − $30.

If you give me Adam’s previous net income or previous total expenses, I can plug in the numbers and give the exact new totals.