Jim and Alice Lange, employees at Walmart, have put themselves on a strict budge
ID: 3121534 • Letter: J
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:
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.)
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:
Explanation / Answer
Given:
Cost of boat :$19000
Jim = $1900
Alice = $2300
Total amount earned per month = 1900+2300
= $4200
Expenses :
Food and lodging = 44%
= (44/100)*4200
= $1848
Entertainment = 25%
= (25/100)*4200
= $1050
Education = 10%
= (10/100)*4200
= $420
Total monthly expense = $(1848+1050+420)
= $3318
Total Monthly Savings = $(4200-3318)
= $882
Savings after 1 year = 882*12
= $10584
The required amount needed was $19000 but the total savings
is only $10584 which is short by $8416.
Therefore they will not be able to buy the boat.
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