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Mr. Thom makes $25,900/year salary as a document processor. He has made the following chart in order to divide his weekly paycheck into his accounts:

Expense type
Account
Weekly deposits
Essential (Fixed)
1st Checking account
$219
Essential (Variable)
1st Checking account
$115
Non-essential
2nd Checking account
$40
Other (Unexpected)
Emergency savings account
$20
Other (Predictable)
Education investment fund
$10
Other (Predictable)
Retirement investment fund
$40
Other (Predictable)
Emergency savings account
$15
Total paycheck

$498

Unfortunately, he has made a mistake in adding the numbers and has not allocated all of the paycheck. If he deposits the difference into the two emergency savings accounts, how much total per week can he then put towards emergency savings?
a.
$40
b.
$60
c.
$74
d.
$55

1 answer

To find the total amount Mr. Thom can deposit into his emergency savings accounts, we first need to calculate the total of his planned weekly deposits:

  • Essential (Fixed): $219
  • Essential (Variable): $115
  • Non-essential: $40
  • Other (Unexpected - Emergency savings account): $20
  • Other (Predictable - Education investment fund): $10
  • Other (Predictable - Retirement investment fund): $40
  • Other (Predictable - Emergency savings account): $15

Now let's add these amounts together:

\[ 219 + 115 + 40 + 20 + 10 + 40 + 15 = 459 \]

This total amount allocated is $459.

Next, we know his total paycheck is $498. We can find the difference between his total paycheck and the total allocated:

\[ 498 - 459 = 39 \]

This $39 is the amount he hasn't allocated yet.

If he deposits the entire $39 into the two emergency savings accounts, we need to consider how much is already in those accounts:

  • Emergency savings account (Other - Unexpected): $20
  • Emergency savings account (Other - Predictable): $15

Currently, the total in the emergency savings accounts is:

\[ 20 + 15 = 35 \]

Adding the $39 that will be deposited to the existing amount in the emergency savings accounts:

\[ 35 + 39 = 74 \]

Therefore, the total amount that can go towards emergency savings is:

\[ \text{Total towards emergency savings} = 74 \]

Thus, the correct answer is:

c. $74