Question

Jim and Alice Lange, employees at Walmart, have put themselves on a strict budget. Their goal at year’s end is to buy a boat for $19,000 in cash. Their budget includes the following: 44% food and lodging 25% entertainment 10% educational Jim earns $1,900 per month and Alice earns $2,300 per month. After 1 year, will Alice and Jim have enough cash to buy the boat? (Assume that any amounts left over will be saved for purchase of boat.)

Answer 1

Answer:

  no

Step-by-step explanation:

The amounts listed total 79% of their income, so 21% is "left over." Their total earnings are ...

  $1900 +2300 = $4200 per month

Annually, that is ...

  $4200/mo × 12 mo/yr = $50,400/yr

The left over amount is 21% of that, or ...

  0.21 × $50,400 = $10,584

At year's end, they will have saved an amount somewhat short of their $19,000 goal. NO, they will not have enough to buy the boat.