kimberly12184
Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Tristan has found a good job as a bookkeeping clerk after finishing his associate's degree at the local community college. He is making a beginning annual salary of [tex]$\$[/tex]19,760[tex]$. How can this increased income affect his financial decisions?

Compare his previous budget when he worked part-time while finishing his degree with his current budget after getting a full-time job.

\begin{tabular}{|l|r|r|}
\hline
\textbf{Monthly Budget} & \textbf{Previous Budget} & \textbf{Current Budget} \\
\hline
\textbf{Income} & $[/tex]\[tex]$786$[/tex] & [tex]$\$[/tex]1646[tex]$ \\
\hline
\textbf{Expenses} & $[/tex]\[tex]$300$[/tex] & [tex]$\$[/tex]600[tex]$ \\
\hline
Rent & $[/tex]\[tex]$60$[/tex] & [tex]$\$[/tex]120[tex]$ \\
Utilities & $[/tex]\[tex]$130$[/tex] & [tex]$\$[/tex]200[tex]$ \\
Groceries & $[/tex]\[tex]$120$[/tex] & [tex]$\$[/tex]350[tex]$ \\
Savings & $[/tex]\[tex]$150$[/tex] & [tex]$\$[/tex]150[tex]$ \\
Car Expenses & $[/tex]\[tex]$20$[/tex] & [tex]$\$[/tex]120[tex]$ \\
Entertainment & $[/tex]\[tex]$6$[/tex] & [tex]$\$[/tex]106$ \\
\hline
\textbf{Net Income} & & \\
\hline
\end{tabular}

Tristan is spending too much money on groceries and entertainment.

Sagot :

GinnyAnswer
To analyze how Tristan's increased income affects his financial decisions, let's compare his previous budget when he worked part-time with his current budget after getting a full-time job.

### Previous Budget
- Income: \[tex]$786 - Expenses: - Rent: \$[/tex]300
- Utilities: \[tex]$60 - Groceries: \$[/tex]130
- Savings: \[tex]$120 - Car Expenses: \$[/tex]150
- Entertainment: \[tex]$20 - Others: \$[/tex]6

### Calculation of Previous Expenses
Adding up all the previous expenses:

[tex]\[ 300 + 60 + 130 + 120 + 150 + 20 + 6 = 786 \][/tex]

Thus, his total previous expenses are \[tex]$786. ### Calculation of Previous Net Income Tristan's net income is calculated as: \[ \text{Net Income} = \text{Income} - \text{Expenses} \] For the previous budget: \[ 786 - 786 = 0 \] So, his previous net income was \$[/tex]0.

### Current Budget
- Income: \[tex]$1646 - Expenses: - Rent: \$[/tex]600
- Utilities: \[tex]$120 - Groceries: \$[/tex]200
- Savings: \[tex]$350 - Car Expenses: \$[/tex]150
- Entertainment: \[tex]$120 - Others: \$[/tex]106

### Calculation of Current Expenses
Adding up all the current expenses:

[tex]\[ 600 + 120 + 200 + 350 + 150 + 120 + 106 = 1646 \][/tex]

Thus, his total current expenses are \[tex]$1646. ### Calculation of Current Net Income For the current budget: \[ 1646 - 1646 = 0 \] So, his current net income is \$[/tex]0.

### Increment in Expenses
To determine how much more Tristan is spending now compared to before:

- Groceries:
- Previous: \[tex]$130 - Current: \$[/tex]350
- Increment: [tex]\(350 - 130 = 220\)[/tex]

- Entertainment:
- Previous: \[tex]$6 - Current: \$[/tex]106
- Increment: [tex]\(106 - 6 = 100\)[/tex]

### Conclusion
Tristan's increased income has resulted in a corresponding increase in his expenses, effectively leaving his net income unchanged at zero in both periods. However, his spending on groceries and entertainment has notably increased by \[tex]$220 and \$[/tex]100, respectively. This suggests that Tristan is allowing his higher income to significantly impact his spending habits in these categories.
Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.