Question

Each month, Angela budgets $1340 for fixed expenses, $850 for living expenses, and $60 for annual expenses. Her annual net income is $26,760. Which
sentence best describes her monthly budget
a. it shows a deficit of $20
b. it shows a surplus of $20
c. it shows a deficit of $140
d. it is balanced

Answer 1

Yearly budget= $26,760

Fixed expenses per month= $1340
Fixed expenses per year (1340×12) =$16,080

Living expenses per month= $850
Living expenses per year (850×12)= $10,200

Annual expenses= $60

Add ALL the expenses together.
16,080+10,200+60= £26340

Therefore her monthly budget is balanced. Shes not in deficit.

D

Answer 2

Divide the net income by 12. Add the monthly expenses and subtract this total from the monthly net income.

The answer is B: Surplus of 20.