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With his new company, Ruben has a two-year assignment living in a large city. The company will reimburse most of his expenses. Ruben is using the Quantitative Reasoning Process to build a budget. Calculate Ruben's estimated living expenses for the next two years using the following:Rent: $1891 per monthGym membership: $167 per year with a monthly fee of $22Renters' insurance: $75 every 6 monthsGroceries: $410 per monthEating out & entertaining: $126 per weekAssume 52 weeks in 1 year and 12 months in 1 year.(Round your answer to the nearest whole dollar

Question

With his new company, Ruben has a two-year assignment living in a large city. The company will reimburse most of his expenses. Ruben is using the Quantitative Reasoning Process to build a budget. Calculate Ruben's estimated living expenses for the next two years using the following:Rent: 1891permonthGymmembership:1891 per monthGym membership: 167 per year with a monthly fee of 22Rentersinsurance:22Renters' insurance: 75 every 6 monthsGroceries: 410 per monthEating out & entertaining: 126 per weekAssume 52 weeks in 1 year and 12 months in 1 year.(Round your answer to the nearest whole dollar

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Solution

To calculate Ruben's estimated living expenses for the next two years, we need to add up all his expenses.

  1. Rent: 1891permonth.Fortwoyears,thiswouldbe1891 per month. For two years, this would be 1891 * 12 months/year * 2 years = $45,384.

  2. Gym membership: 167peryearwithamonthlyfeeof167 per year with a monthly fee of 22. For two years, this would be (167/year+167/year + 22/month * 12 months/year) * 2 years = $668.

  3. Renters' insurance: 75every6months.Fortwoyears,thiswouldbe75 every 6 months. For two years, this would be 75 * 2 times/year * 2 years = $300.

  4. Groceries: 410permonth.Fortwoyears,thiswouldbe410 per month. For two years, this would be 410 * 12 months/year * 2 years = $9,840.

  5. Eating out & entertaining: 126perweek.Fortwoyears,thiswouldbe126 per week. For two years, this would be 126/week * 52 weeks/year * 2 years = $13,104.

Adding all these expenses together, we get 45,384(rent)+45,384 (rent) + 668 (gym) + 300(insurance)+300 (insurance) + 9,840 (groceries) + 13,104 (eating out & entertaining) = 69,296.

So, Ruben's estimated living expenses for the next two years would be approximately $69,296.

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