Art makes four payments a year of $287 each for real estate taxes. He

Question

makes six payments a year of $226 for auto insurance. How much must he
budget monthly to cover these fixed expenses?
a. $95.67
b. $108
c. $113
d. $208.67

Answer 1

To find out the monthly budget for these expenses, we need to add up the total annual payments and divide by 12 (the number of months in a year).

For real estate taxes, Art pays $287 four times a year, so the total annual payment is:

$287 × 4 = $1,148

For auto insurance, Art pays $226 six times a year, so the total annual payment is:

$226 × 6 = $1,356

Adding these two annual payments together:

$1,148 + $1,356 = $2,504

Dividing by 12:

$2,504 ÷ 12 = $208.67

Therefore, Art must budget $208.67 per month to cover these fixed expenses.

Answer: d. $208.67