To determine which budget would help Damian save $7200 for a car within the next two years, we first need to calculate how much he needs to save each month.
Total amount needed: $7200
Time frame: 2 years (24 months)
Monthly savings needed = Total amount needed / Number of months
Monthly savings needed = $7200 / 24 = $300
Now we'll look at each budget to see if he can save at least $300 per month while covering his essential expenses.
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Budget A:
- Income: $1000
- Expenses:
- Rent: $300
- Utilities: $75
- Food: $150
- Bus Pass: $25
- Car Savings: $350
- School Savings: $100
- Total Expenses = $300 + $75 + $150 + $25 + $350 + $100 = $1000
- Savings: $1000 - $1000 = $0
-
Budget B:
- Income: $1000
- Expenses:
- Rent: $300
- Utilities: $75
- Food: $150
- Bus Pass: $25
- Car Savings: $250
- School Savings: $200
- Total Expenses = $300 + $75 + $150 + $25 + $250 + $200 = $1000
- Savings: $1000 - $1000 = $0
-
Budget C:
- Income: $1000
- Expenses:
- Rent: $300
- Utilities: $75
- Food: $75
- Bus Pass: $0 (no bus pass)
- Car Savings: $300
- School Savings: $250
- Total Expenses = $300 + $75 + $75 + $0 + $300 + $250 = $1000
- Savings: $1000 - $1000 = $0
-
Budget D:
- Income: $1000
- Expenses:
- Rent: $300
- Utilities: $75
- Food: $150
- Bus Pass: $25
- Car Savings: $100
- School Savings: $350
- Total Expenses = $300 + $75 + $150 + $25 + $100 + $350 = $1000
- Savings: $1000 - $1000 = $0
None of the budgets allow him to save the required $300 per month after covering essential expenses, as he doesn't have anything left over in any of the budgets after expenses equal his income.
However, Budget C allows him to save $300 actually for the car (not accounted for in expenses on the surface but rather in the savings directly). Therefore, Budget C is still the one that gets closest to achieving the goal.
So, the best choice for Damian to save the needed amount in a timely manner with minimal effect on his other essential expenses would be:
c. Budget C