Question

Mr. Thom makes $25,900/year salary as a document processor. He has made the following chart in order to divide his weekly paycheck into his accounts: Expense type Account Weekly deposits Essential (Fixed) 1st Checking account $219 Essential (Variable) 1st Checking account $115 Non-essential 2nd Checking account $40 Other (Unexpected) Emergency savings account $20 Other (Predictable) Education investment fund $10 Other (Predictable) Retirement investment fund $40 Other (Predictable) Emergency savings account $15 Total paycheck $498 Unfortunately, he has made a mistake in adding the numbers and has not allocated all of the paycheck. If he deposits the difference into the two emergency savings accounts, how much total per week can he then put towards emergency savings?

Answer 1

Expense Type               Account                               Weekly Deposits 
Essential (Fixed) 1st Checking Account  $                          219.00
Essential (Variable) 1st Checking Account  $                       115.00
Non-essential 2nd Checking Account  $                                 40.00
Other (Unexpected) Emergency savings account  $                20.00
Other (Predictable) Educational investment fund  $                 10.00
Other (Predictable) Retirement investment fund  $                  40.00
Other (Predictable) Emergency savings account  $                 15.00
Total paycheck                                              $                  459.00

Total paycheck computed by Mr. Thom  $                  498.00
Total paycheck (correct amount)            $                  459.00
difference                                           $                    39.00

deposited in two emergency savings account $39/2 = 19.50 each account

Other (unexpected): Emergency savings account  20 + 19.50 = 39.50 
Other (predictable) Emergency savings account  15 + 19.50 = 34.50 

Total per week for emergency savigns accounts:  39.50 + 34.50 =  $74.00                              

Answer 2

The correct answer is C.