Art makes four payments a year of $287 each for real estate taxes. He
makes six payments a year of $226 for auto insurance. How much must he
budget monthly to cover these fixed expenses?
a. $95.67
b. $108
c. $113
d. $208.67
To find out the monthly budget for these expenses, we need to add up the total annual payments and divide by 12 (the number of months in a year).
For real estate taxes, Art pays $287 four times a year, so the total annual payment is:
$287 × 4 = $1,148
For auto insurance, Art pays $226 six times a year, so the total annual payment is:
$226 × 6 = $1,356
Adding these two annual payments together:
$1,148 + $1,356 = $2,504
Dividing by 12:
$2,504 ÷ 12 = $208.67
Therefore, Art must budget $208.67 per month to cover these fixed expenses.
Answer: d. $208.67
To find the monthly budget to cover these fixed expenses, we need to calculate the total amount of payments per year for both real estate taxes and auto insurance and then divide it by 12 (months).
For real estate taxes:
Art makes four payments a year, each of $287.
Total annual payment for real estate taxes = 4 x $287 = $1,148
For auto insurance:
Art makes six payments a year, each of $226.
Total annual payment for auto insurance = 6 x $226 = $1,356
Now, we add the total annual payments for real estate taxes and auto insurance:
Total annual payments = $1,148 + $1,356 = $2,504
Finally, we divide the total annual payments by 12 (months) to find the monthly budget:
Monthly budget = $2,504 / 12 = $208.67
Therefore, the correct answer is d. $208.67.
To find out how much Art must budget monthly to cover these fixed expenses, we need to calculate the total amount he pays per year for real estate taxes and auto insurance, and then divide that by 12 (the number of months in a year).
For real estate taxes:
Art makes 4 payments of $287 each per year, so the total amount he pays for real estate taxes is 4 * $287 = $1148.
For auto insurance:
Art makes 6 payments of $226 each per year, so the total amount he pays for auto insurance is 6 * $226 = $1356.
Now, let's calculate the total amount Art pays per year for these fixed expenses:
Total amount = Real estate taxes + Auto insurance = $1148 + $1356 = $2504.
Finally, to find the monthly budget, we divide the total amount by 12:
Monthly budget = Total amount / 12 = $2504 / 12 = $208.67.
Therefore, the correct option is d. $208.67.