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: 167 per year with a monthly fee of 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
Solution
To calculate Ruben's estimated living expenses for the next two years, we need to add up all his expenses.
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Rent: 1891 * 12 months/year * 2 years = $45,384.
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Gym membership: 22. For two years, this would be (22/month * 12 months/year) * 2 years = $668.
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Renters' insurance: 75 * 2 times/year * 2 years = $300.
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Groceries: 410 * 12 months/year * 2 years = $9,840.
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Eating out & entertaining: 126/week * 52 weeks/year * 2 years = $13,104.
Adding all these expenses together, we get 668 (gym) + 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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