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.



Please select the best answer from the choices provided


A
B
C
D

Answer 1

B

Actual income = $900 + $25 = $925.
Actual expenses without savings = $400 + $80 + $200 + $75 = $755.
925 − 755 = $170 available for savings, so saving $170 gives net income $0 (any more makes it negative).