Predict how much money can be saved without having a negative actual net income.

Question

Monthly Budget
Budgeted Amount
Actual Amount
Income
Wages
Savings Interest
$1150
$25
$900
$25
Expenses
Rent
Utilities
Food
Cell Phone
Savings

$400
$100
$250
$75
$200

$400
$80
$200
$75
$____
Net Income
$150
$____

a.
It is not possible to save any money this month without having a negative actual net income.
b.
$170 can be saved resulting in an actual net income of $0.
c.
$200 can be saved resulting in an actual net income of $150.
d.
As long as you are saving money, you will not have a negative actual net income.

Answer 1

To determine how much can be saved without having a negative actual net income, we first need to calculate the actual net income based on the information given.

1. Calculate Total Income:

   • Wages: $900
   • Savings Interest: $25
   • Total Income = $900 + $25 = $925

2. Calculate Total Expenses:

   • Rent: $400
   • Utilities: $80 (actual, previously budgeted as $100)
   • Food: $200 (actual, previously budgeted as $250)
   • Cell Phone: $75 (actual, same as budgeted)
   • Savings: (to be determined)
   • Total Expenses (excluding savings) = $400 + $80 + $200 + $75 = $755

3. Calculate Actual Net Income:

   • Actual Net Income = Total Income - Total Expenses
   • We need to account for the savings amount (let's denote savings as S).
   • Actual Net Income = $925 - ($755 + S)
   • Actual Net Income = $925 - $755 - S
   • Actual Net Income = $170 - S

Now, to ensure that the actual net income is not negative:

\[ 170 - S \geq 0 \]

This means:

\[ S \leq 170 \]

Thus, the maximum amount that can be saved without going negative is $170.

So, the answer is:

b. $170 can be saved resulting in an actual net income of $0.