Question

Maureen has a net spendable income of $2,100 per month. She sets up the following transportation budget for herself. 3. Transportation (15% - 20%) 350 a. Car payments 150 b. Gas/Oil 120 c. Insurance 60 d. License/Registration 2 e. Taxes 5 f. Maintenance/Repair 50 What has Maureen done wrong?

Answer 1

Answer:

Given is : Maureen has a net spendable income of $2,100 per month.

Now, she sets up a 15 to 20% budget for transportation.

This means her should budget lie between

$0.15\times1200=180$ to $0.20\times1200=240$ but she assigned $350 for this category.

Now adding up the sub- categories, we get:

$150+120+60+2+5+50 =387$

So, we can clearly see that the sub-categories cost more than the category itself.

Maureen has budgeted her transportation wrongly. Either she should increase the budget or she should cut out few dollars from the sub categories.

Answer 2

She would need $387 dollars to cover her transportation budget. She will need to increase her transportation budget to cover the minimum recommended amount. hope this helps