Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In order to own their own home, Ian and Tami are willing to cut their clothing and entertainment expenditures by 3 0 % each and

In order to own their own home, Ian and Tami are willing to cut their clothing and entertainment expenditures by 30% each and could decrease their savings allotments by 20%.(Some savings still will be necessary to provide for additional furnishings they would need
and for expenses of an expanding family in the future.) They also figure that the new house and yard would require $130 monthly for maintenance and that utilities will be twice what they have been in the apartment. Other than that, their present budget allotments would remain the same.
Fill in the updated monthly budget:
Monthly Budget
Category Amount Adjusted Amount
Rent/Mortgage $1050 $
Food $600 $600
Day Care $525 $525
Clothing $420 $
Utilities $120 $
Entertainment $300 $
Savings $450 $
Other $300 $300
House/Yard Maintenance $130
Total $3765 $
The difference between their current budget and their adjusted budget is $
Based on their adjusted budget, can Ian and Tami afford the house (yes/no)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting Uk Gaap Volume 2

Authors: Alan Sangster, Frank Wood

1st Edition

0273718800, 9780273718802

More Books

Students also viewed these Accounting questions