Math 20-3 Ch 7 Review

Which of the following is a variable expense?

• rent

• clothing

• insurance

• loan payment

Answer explanation

Variable - changes over time, some months might not have any! Some months more than others, not regular.

Which of the following is a recurring expense

• your salary

• transportation

• rent

• entertainment

Answer explanation

Recurring means always there, and the same amount every time... not variable.

Transportation changes based on how much you travel.

Some months you spend more on entertainment than others (eg. you go to a concert).

Salary is an income, not an expense.

In a conservative budget, we round expenses up and round income down to be safe.

You average an income of $522 per week. What would be a conservative monthly income for your budget?

• 500

• 2000

• 2088

• 2100

Answer explanation

522 per week = 2088 per month

Conservative, so round income down... $2000

In a conservative budget, we round expenses up and round income down to be safe.

You average $175 per month in gas bills. What would be a conservative monthly gas cost for your budget?

• 150

• 175

• 200

• 700

Answer explanation

Conservative, so round expenses up... $200

You save $1400 per year, and make $2000 per month. What percent of your income are you saving?

• 0.7%

• 5.8%

• 58%

• 70%

Answer explanation

Make: $2000 / month

x 12

Make: $24,000/year

Save : $1400 / year

$1400 / $24000 x 100% =

You need to save $5000 for a summer trip in grade 12. It will be 14 months until you leave. How much money do you need to save each month?

• $60000

• $600

• $416

• $357

What percentage of her income is Petra spending on Food?

• 19%

• 21%

• 23%

• 25%

Answer explanation

Look at her total income, not her total expenses.

Food = 325 / 1400 x 100% =

This is Benjamin's monthly expenses. How much money does he need to make each week in order to have a balanced budget? (Assume 4 weeks in one month).

• $375

• $750

• $1500

• $6000

Answer explanation

Take to total and divide by 4 to get weekly.

Mos expert recommend spending about 15% of your income on food. If you make $45000 per year, about how much should you spend on food each month? (Conservatively)

• $550

• $575

• $6500

• $6750

Answer explanation

Find 15% of your total income, then divide by 12 to get monthly.

Match each income or expense to the correct type.

• recurring expense

• replacing broken TV

• unexpected expense

• your salary

• regular income

• car loan payment

• variable income

• tips collected

• variable expense

• groceries