Question

Damian wants to save $7200 to buy a car within the next 2 years. Which budget would help Damian save enough money to buy a car in a timely manner with minimal effect on his other essential expenses?
Monthly Budget
Budget A
Budget B
Budget C
Budget D
Income
$1000
$1,000
$1,000
$1,000
Expenses-
Rent
Utilities
Food
Bus Pass
Car Savings
School Savings

$300
$75
$150
$25
$350
$100

$300
$75
$150
$25
$250
$200

$300
$75
$75
$0
$300
$250

$300
$75
$150
$25
$100
$350

a.
Budget A
b.
Budget B
c.
Budget C
d.
Budget D



Please select the best answer from the choices provided


A
B
C
D

Answer 1

Answer: A

Reason: 7200 ÷ 24 months = $300/month needed. Budget A saves $350/month (meets target) while keeping rent, utilities, and food at their normal levels. Budget C meets the $300/month exactly but cuts essential expenses (food and bus), so Budget A is the better choice.