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Eugene is using the Quantitative Reasoning Process to create a monthly budget.Calculate the net monthly cash flow for Eugene’s expenses and income.(Assume 4 weeks per month and 12 months per year. This means we will assume 48 weeks in a year.)Income ExpensesPart-time job: $600/month Rent: $564/monthCollege fund from Grandparents: $300/month Groceries: $71/weekScholarship: $4,440/year Tuition and fees: $2,129 twice per yearMiscellaneous: $88/week (Round your answer to the nearest whole dollar, and don't include the dollar sign.)

Question

Eugene is using the Quantitative Reasoning Process to create a monthly budget.Calculate the net monthly cash flow for Eugene’s expenses and income.(Assume 4 weeks per month and 12 months per year. This means we will assume 48 weeks in a year.)Income ExpensesPart-time job: 600/monthRent:600/month Rent: 564/monthCollege fund from Grandparents: 300/monthGroceries:300/month Groceries: 71/weekScholarship: 4,440/yearTuitionandfees:4,440/year Tuition and fees: 2,129 twice per yearMiscellaneous: $88/week (Round your answer to the nearest whole dollar, and don't include the dollar sign.)

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Solution

First, let's calculate Eugene's total monthly income:

  • Part-time job: $600/month
  • College fund from Grandparents: $300/month
  • Scholarship: 4,440/year.Toconvertthistoamonthlyamount,divideby12(monthsinayear).4,440/year. To convert this to a monthly amount, divide by 12 (months in a year). 4,440 ÷ 12 = $370/month
  • Miscellaneous: 88/week.Toconvertthistoamonthlyamount,multiplyby4(weeksinamonth).88/week. To convert this to a monthly amount, multiply by 4 (weeks in a month). 88 x 4 = $352/month

Total monthly income = 600+600 + 300 + 370+370 + 352 = $1,622

Next, let's calculate Eugene's total monthly expenses:

  • Rent: $564/month
  • Groceries: 71/week.Toconvertthistoamonthlyamount,multiplyby4(weeksinamonth).71/week. To convert this to a monthly amount, multiply by 4 (weeks in a month). 71 x 4 = $284/month
  • Tuition and fees: 2,129twiceperyear.Toconvertthistoamonthlyamount,divideby6(sincethepaymentismadetwiceayear,orevery6months).2,129 twice per year. To convert this to a monthly amount, divide by 6 (since the payment is made twice a year, or every 6 months). 2,129 ÷ 6 = $355/month

Total monthly expenses = 564+564 + 284 + 355=355 = 1,203

Finally, to calculate the net monthly cash flow, subtract the total monthly expenses from the total monthly income:

Net monthly cash flow = Total monthly income - Total monthly expenses = 1,6221,622 - 1,203 = $419

So, Eugene's net monthly cash flow is $419.

This problem has been solved

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