Question

Each month Elizabeth budgets $760 for fixed expenses, $620 for living expenses, and $80 for annual expenses. Her annual net income is $32,580. Which sentence best describes her monthly budget?
A. It shows a deficit of $1255
B. It shows a surplus of $1255
C. It shows a surplus of $1460
D. It is balanced

Answer 1

Answer: Option 'C' is correct.

Step-by-step explanation:

Since we have given that

Amount she spent on fixed expenses = $760

Amount she spent on living expenses = $620

Amount she spend for annual expenses = $80

Total expenditure will be

$760+620+80\\\\=\ 1460$

Her annual net income = $32580

So, Her monthly net income will be

$\frac{32580}{12}=\ 2715$

So, we can see that her income is more than her expenses.

So, she yield surplus.

Surplus = Revenue - Expenditure

$=2715-1480\\\\=\ 1255$

Hence, It shows a surplus of $1255.

Hence, Option 'C' is correct.

Answer 2

760+620+80=1460 total monthly expenses.
$32,580 annually divided by 12 months = monthly income of $2,715
2,715-1460=1,255
Her budget shows a surplus of $1,255