Workplace 20 - Budgets Multiple Choice Identify the choice that best completes the statement or answers the question. 1. If your annual salary is $26033.00 and you expect a raise of 3.6% at the start of the new year, what will your new annual salary be? a. $26970.19 c. $27005.19 b $25128.38 d. $25095.81 2. Which of the following is an example of a recurring expense? a. Groceries Transportation b. C. Car insurance d. Entertainment 3. If you make $2710.00 a month and must spend 89% of that on recurring and variable expenses, how much money can you potentially save in one year? a. $3577.20 C. $32519.11 b. $2682.90 d. $28942.80 4. Paying for a meal at a restaurant can be classified as what type of expense? a. Unexpected expense C. Variable expense b. Regular expense d. Recurring expense Danita earns a variable income. In the past three months, she earned $337.00, $511.00, and $805.00 per month. What is her average monthly income? a. $775.67 C. $1312.33 b. $551.00 d. $1428.33 6. You have made a budget that allocates $125.00 to savings each month. How long will it take to save $2240.00? a. 18 C . 16 b. 20 d . 17 7. Art currently saves 18% of his income. If his annual income is $49290.00, how much more money would he be saving per month if he put aside 28% of his income instead? a. $4436.00 C. $5915.00 b. $3696.75 d. $4929.008. Francine has started creating a monthly budget. Francine's monthly budget Income Expenses $550.00 Regular income $2300.00 Rent Car $365.00 Groceries $250.00 Entertainment $295.00 Miscellaneous $150.00 Savings TOTAL $2300.00 TOTAL She puts any extra money towards savings. What percentage of her monthly income does her savings represent? a. $862.50 C . $759.00 b. $690.00 d. $552.00 9 . Sebastian has started creating a balanced monthly budget. Sebastian's monthly budget Income Expenses Semi-monthly paycheque Rent $700.00 Semi-monthly paycheque Car $400.00 Groceries $260.00 Entertainment $245.00 Miscellaneous $150.00 Savings $45.00 TOTAL TOTAL If his budget is balanced, and he earns two equal paycheques each month, how much does he earn on each paycheque? a. $1800.00 C . $877.50 b. $900.00 d. $1650.00 10. Donald's annual income is $28380.00. He can put a maximum of 32% of his income towards paying monthly rent. What is the highest rent he can afford? a. $756.80 C. $681.12 b. $908.16 d. $983.84 Nort Answer 1. If Bryce earns $2700.00 a month, what percentage of his income must he save each month to pay a term of tuition of $2000.00 in 5 months time? (3 marks) 2. Jae-Sun's average variable income is $279.19 per month. How much money should he allocate to variable income in a conservative monthly budget? Explain your reasoning. (1 mark) . Barry saves $313.00 in January, $197.00 in February and $217.00 in March. Given this information alone, estimate Barry's total savings in one year. (2 marks) 4. Amy saves about $2832.00 in one year. How much can she save up in 38 weeks? (2 marks) 5. Khalid earns $2665.00 each month. He budgets $460.00 for entertainment expenses each month. What percentage of his income is going towards entertainment expenses? (2 marks)Name: ID: A Name: 6. Mel's parents have given her $1450.00 a month to help cover her living expenses while studying abroad. If Mel's parents require her to spend 55% to 80% of this money on rent, in what rental price range should Mel look for an apartment? (3 marks) Problem 1. Why should you include an amount for unexpected expenses when making a budget? (1 mark) 2. Naheed's monthly salary is $2400.00. His mortgage accounts for 28% of his income, and variable expenses account for another 47%. How much money can Naheed save in 5 months if those are his only expenses? (3 marks)Name: ID: A 3. Jacek has listed his income and expenses for one month. He has regular income from a part-time job and also earns money from tutoring. Paycheque $625.00 Cell phone $75.00 Entertainment $175.00 Food $270.00 Rent $500.00 Renter's insurance $35.00 Transportation $225.00 Paycheque $625.00 Tutoring $100.00 Loan payment $25.00 Replace broken printer $150.00 Tutoring $150.00 a) Sort the items into income and expenses. Classify the income as regular or variable, and the expenses as recurring, variable, or unexpected. (2 marks) b) Calculate Jacek's total income and expenses. (2 marks) c) How much money can Jacek save in one year if he puts any extra money into savings? (2 marks) d) What percentage of his income does his savings represent? (2 marks) 5ID: A Name: 4. Peter has started creating a monthly budget. Peter's monthly budget Income Expenses Semi-monthly paycheque $890.00 Rent $595.00 Semi-monthly paycheque $890.00| Utilities, phone, internet $150.00 Groceries $300.00 Transportation $190.00 Entertainment $200.00 Clothing $150.00 Charitable donations $20.00 Miscellaneous $150.00 Savings TOTAL TOTAL a) Calculate how much money Peter can put into savings in one month. (2 marks) b) What percentage of his income goes to entertainment? (2 marks) c) If Peter wanted to begin saving more money, what are two changes he could make to his spending? (2 marks) 6