To evaluate whether the Cumberland family can afford the larger apartment, we need to analyze their current budget.
Current Monthly Income:
- Take-home pay = $4,000
Current Fixed Expenses:
- Rent = $1,000
- Utilities = $200
- Car Insurance = $500
- Car Payments = $500
- Total Fixed Expenses = $1,000 + $200 + $500 + $500 = $2,200
Current Flexible Expenses:
- Groceries = $600
- Entertainment = $300
- Dining Out = $400
- Clothing = $250
- Total Flexible Expenses = $600 + $300 + $400 + $250 = $1,550
Total Current Expenses:
- Total Expenses = Fixed Expenses + Flexible Expenses = $2,200 + $1,550 = $3,750
Remaining Income After Current Expenses:
- Remaining = Take-home pay - Total Expenses = $4,000 - $3,750 = $250
Now, let's evaluate the affordability of the new apartment costing $1,500 per month.
New Fixed Expenses with Larger Apartment:
- New Rent = $1,500
- Utilities (assuming no change) = $200
- Car Insurance = $500
- Car Payments = $500
- New Total Fixed Expenses = $1,500 + $200 + $500 + $500 = $2,700
Total Expenses with Larger Apartment:
- Total Flexible Expenses remain the same at $1,550.
- New Total Expenses = New Fixed Expenses + Flexible Expenses = $2,700 + $1,550 = $4,250
Remaining Income After New Total Expenses:
- Remaining = Take-home pay - New Total Expenses = $4,000 - $4,250 = -$250
Since their remaining income is negative (-$250), the Cumberland family cannot afford the larger apartment under their current budget.
Final Answer: No