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scZoUnD [109]
3 years ago
7

Mike has a net spendable income of $1,400. He decides to set up a budget before looking for an apartment or a car. He sets up hi

s budget and finds that he has lots of money left over. He puts the extra money into entertainment.
Housing $420
Food $168
Transportation $210
Insurances $42
Debts $70
Entertainment $224
Clothing $70
Savings $70
Medical $56
Miscellaneous $70
Why might this budget be a problem?


A.) Mike will spend more money than he is earning.

B.) Mike does not have enough money budgeted for food or medical expenses.

C.) Mike is using the minimum recommended percentages for food, housing, and transportation. The costs are likely to exceed the expenses in each category.

D.) Mike has not budgeted all of his money. He will find that he has extra money at the end of the month, which will end up being wasted.
Mathematics
2 answers:
Shtirlitz [24]3 years ago
7 0

C.) Mike is using the minimum recommended percentages for food, housing, and transportation. The costs are likely to exceed the expenses in each category.


Triss [41]3 years ago
5 0

Answer:

Option C is the answer.

Step-by-step explanation:

Mike has a net spendable income of $1,400.

His total budget is :

Housing =$420

Food=$168

Transportation=$210

Insurances=$42

Debts=$70

Entertainment=$224

Clothing=$70

Savings=$70

Medical=$56

Miscellaneous=$70

420+168+210+42+70+224+70+70+56+70=1400

So, out of all the given options, the correct one seems to be :

Mike is using the minimum recommended percentages for food, housing, and transportation. The costs are likely to exceed the expenses in each category.

Therefore, we can say that Mike should budget properly as he is spending more on entertainment, rather than more important categories.

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