Round any decimals to the nearest penny.

Question

Your realized income is $3,167.89/month, and your fixed expenses are $954.32/every 2 weeks. If you save 50% of your discretionary monies each month, how much are you saving?
$
/month

Answer 1

To find out how much you are saving each month, we need to calculate your discretionary income after deducting your fixed expenses.

1. Calculate monthly fixed expenses: Since your fixed expense is given as $954.32 for every 2 weeks, we first determine how much that amounts to in a month. There are approximately 4.33 weeks in a month (52 weeks divided by 12 months), which means you have about 2.17 bi-weekly periods in a month.

   \[ \text{Monthly fixed expenses} = 954.32 \times 2.17 \approx 2,068.84 \]

2. Calculate discretionary income: Now, subtract the monthly fixed expenses from your realized income:

   \[ \text{Discretionary income} = \text{Realized income} - \text{Monthly fixed expenses} \] \[ \text{Discretionary income} = 3,167.89 - 2,068.84 = 1,099.05 \]

3. Calculate savings: You save 50% of your discretionary income each month:

   \[ \text{Savings} = 0.50 \times \text{Discretionary income} \] \[ \text{Savings} = 0.50 \times 1,099.05 \approx 549.53 \]

So, your savings per month is approximately $549.53.