Looking for not only the solution but an explanation behind the solution for the

Question

Looking for not only the solution but an explanation behind the solution for the following:

A company is working on a project with a budget of $1000. The planned value as of today is $400. The project is 30% complete and 60% of the budget has been spent. If the company continues to spend at the same rate, the project cost will be:

$1000

$800

$600

$400

Every time I work this problem I get $1,400, but that isn't one of the options. Any ideas?

$1000

$800

$600

$400

Every time I work this problem I get $1,400, but that isn't one of the options. Any ideas?

Explanation / Answer

2) $ 600

The total Budget estimate was $ 1000. The planned estimate for 30% of the work is $400 , which means for 70% of the remaining work , your plan is to spend $600.

But the actual spending is 60% of the budget = 60% of 400 = $240

Actual spending ratio = 60%

Since required amount for completing the reamining work = 60% of 600 = $360

So the total expense for completing the project = $240+$360 = $600

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