Question

Each month, Morse budgets $2,704 for fixed expenses, $ 687 for living expenses,and $454 for annual expenses. His annual net income is $ 46,752. Describe hismonthly budget by using a positive number to show how much of a surplus there is, anegative number to show how much of a deficient there is, or zero if it is a balancebudget. Round answer to the nearest whole number.

Answer 1

Morse's monthly expenses are:

* $2,704 for fixed expenses.

* $687 for living expenses.

* $454 for annual expenses.

His total monthly expenses are:

$2,704 + $687 + $454 = $3,845

His annual total expenses are:

12 × $3,845 = $46,140

His annual net income is $46,752. Thus his annual balance is:

$46,752 - $46,140 = $612

His monthly balance is $612/12 = $51.

There is a surplus of $51