Michael is a teacher one of his goals is to go back at shool to earn his masters
ID: 3032617 • Letter: M
Question
Michael is a teacher one of his goals is to go back at shool to earn his masters degree in education.his monthly net income is $2500 so he know that he need to put himselfe on a budget for a period of time in order to save money to go back to school
making a plan\
.step 1 \ research shows that consumer credit counseling services recommend allocating the following percentages for each category of the monthly budget:
housing %25 transporation %10 saving %5 utilities %5 debt payments %20 food %15 misc. %20
task 1: if michael folow this plan how much will he put away in sayvings at the end of one year?
task 2: if michael folow this plan how much will he spend on food by the end of one year?
step 2\ after investigating several schools in this area, michael chooses to attend a state collge that offers a one year program for the degree he wishes to pursue . michael will need $3000 for tuition and fees the first semester and $450 for textbooks.
task 3: what is the total cost for books and fees, and textbooks for one semester?
finding a solution\
step 3\ by controlling his spending michael is able to save for his masters degree.
task 4: how many months will michael have to save to pay for one semester at this college?
task 5: if michael can increase his savings to %10 of his monthly budget by making cuts in other areas, how long would he have to save to pay for one semester?
step 4 \ once miichael earn his advanced degree his salary will increase on the following schedule:
- year 1 an aditional $4200
- year 2 an additional $4800
- year 3 an additional $5200
- year 4 an additional $5500
- year 5 an additional $5800
task 6: if mishael goes bach to his orginal budget how much will he be saving with his new income after five years?
task 7: how much will he have available for misc spending?
Applying the situation to your life:
task 8: do you have a budget ?
task 9: how would you adjust mishael budget to fit your needs ?
task 10: you may not be planing to get a master degree but probably you thinking of saving up for some important purchase , are you thinking of buying a new car that is more fuel efficient ? are you planing a spicial trip? how could you adjust michael budget to help you with your goal?
Explanation / Answer
Total earning = $ 2500
housing %25 transporation %10 saving %5 utilities %5 debt payments %20 food %15 misc. %20
a) 10% on saving = 0.1*2500 =$250
In 1 year = 12*250 = $ 3000
b) On food = 15%
0.15*2500 = $375 in 1 year
In 1 year on food = $ 4500
c) total cost for books and fees, and textbooks for one semester
= $3000 + $450 = $3450
d) In 1 month his saving = $ 250
So, total no. of months required to get $ 3450 = 3450/250 = 13.8 = 14 months