April 16, 2014

Homework Help: ( Online Class ) Consumer Math

Posted by Naty on Saturday, April 14, 2012 at 4:16pm.

Adjusting a budget - Given the net income, the percent budgeted for two variable expenses, and the amount of an unexpected bill, determine if there is enough money in the variable expense items to cover the amount of the unexpected expense or if the bill should be covered with savings.

Net income: $535.25
Percent item 1: 20%
Percent item 2: 17%
Bill due: $96.31
Amount in savings: $150

Adjusting a Budget

At certain times you may want to make changes to a budget. If you get a pay raise, for example, you may want to get a more expensive car or house. On the other hand, you could find out that you donít have enough money for some things that you need, so you must adjust your budget accordingly. Letís look at some sample problems to see if this man has budgeted correctly.

Example 2. Arnold Herlenmeyer

Net income: $950.00
Budgeted percentage for item 1: 5%
Budgeted percentage for item 2: 7%
Combined Payment due on these items: $206.45

According to Arnoldís budget does he have enough to pay for the items?

First we multiply the percentage for item 1 by Arnoldís net income -

◊ .05

Next we multiply the percentage for item 2 by Arnoldís net income

◊ .07
$ 66.50

Now we add those two figures together to see how much Arnold has budgeted:

$ 47.50

So Arnold has only budgeted $114 dollars and the items cost $206.45. He doesnít have enough! He needs to either make an adjustment to his budget or not purchase the items. Letís look at another example.

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