Your realized income is $2,847.69/month. Your fixed expenses are 36% of your monthly income. You decide to save 40% of your discretionary monies each month. How much do you save per month? Round any decimals to the nearest penny.

Question

$
/month

Answer 1

To find out how much you save per month, we first need to calculate your fixed expenses and your discretionary income.

1. Calculate Fixed Expenses: Fixed expenses are 36% of your monthly income.

   \[ \text{Fixed Expenses} = 36% \times 2847.69 = 0.36 \times 2847.69 = 1024.77 \]

2. Calculate Discretionary Income: Discretionary income is the amount left after fixed expenses are subtracted from your monthly income.

   \[ \text{Discretionary Income} = \text{Monthly Income} - \text{Fixed Expenses} \] \[ \text{Discretionary Income} = 2847.69 - 1024.77 = 1822.92 \]

3. Calculate Savings: You plan to save 40% of your discretionary income each month.

   \[ \text{Savings} = 40% \times \text{Discretionary Income} \] \[ \text{Savings} = 0.40 \times 1822.92 = 728.17 \]

So, the amount you save per month is $728.17.