Question

Use the table to answer the question.

Expense Amount
Rent payment $953.20 per month
Auto payment $165.87 per month
Telephone $56.98 per month
Auto insurance $714.36 every six months
Once-a-week outing $35.00 per week
Your realized income is $2,412.54 per month. How much discretionary monies do you have each month? Round to the nearest penny.

$
per month

Answer 1

Auto insurance: 714.36/6 = 119.06 per month
Outing: 35 × (52/12) = 151.67 per month

Monthly expenses = 953.20 + 165.87 + 56.98 + 119.06 + 151.67 = 1,446.78

Discretionary = 2,412.54 − 1,446.78 = $965.76 per month