Angela\'s monthly disposable income is $2,008 She has monthly expenses of $1,817
ID: 2810582 • Letter: A
Question
Angela's monthly disposable income is
$2,008
She has monthly expenses of
$1,817
(including recreational expenses of
$249 )
and net cash flow of
$191
per month. Angela makes a budget based on her personal cash flow statement. In two months, she must pay
$236
for tags and taxes on her car. As a result, Angela can expect to save
$2,056
in the next 12 months. Angela analyzes her personal budget and decides that she can reduce her recreational spending by
$31
per month. How much will that increase her annual savings? What will her annual savings be now?
Explanation / Answer
Her recreational expense would be reduced by $31. Her new recreational expense = 249 -31 = 218
So, her monthly expnses = 1817-31 = 1786
Her monthly savings = 2008-1786 = 222
Since she has expense of 236 in 2 months, annual savings = 222*12-236 = 2,428
Angela's annual savings now = $2,428