Solution:
Monthly net cash flow of Rogerio=$ 248
Total cash flow in a year =$248 × 12=$ 2976
Predictable Expense Amount
Medical exams, lab co-pays, health insurance co-pays $640 every year
Auto maintenance $35 per quarter
Auto registration $225 per year
Total Expense = $ 640 + $ 35 × 4 +$ 225
= $ 640 + $140+ $ 225
= $ 1005
Balance left in Rogerio Account after Expenses= $ 2976 - $1005
= $1971
Money left in Rogerio account after each month for emergency fund =
$
Total income = $ 248
Money for future expenses= $ 248 - $ 164.25= $ 83.75
Option c. $83.75 future expenses; $164.25 emergency fund