Answer to Question #178883 in Financial Math for David

Question

Assume you are going to college and you work a part-time job. You are living in an apartment with some friends.

Your total monthly income is $1950. Your monthly expenses are $1344.

You want to put 22% away into a savings account.

How much would you put away into a savings account?

Answer 1

Here there are two options.

1.) Save 22% of the remainder.

2.) Save 22% of the total monthly income.

Save 22% of remainder after expenses

Total monthly income $ 1,950

Monthly expenses. $ 1,344

Balance. $ 506

$Saving=506\times0.22=111.32$

Save 22% before expenses

$Saving=1950\times0.22=429$