Answer :
Let's analyze each option in detail to see how it impacts Antonio's budget and determine which strategy could best help him meet his goals.
1. Calculate Antonio's old net income:
- Monthly Income: \[tex]$1500 - Monthly Expenses: - Food: \$[/tex]250
- Cell Phone: \[tex]$175 - Savings: \$[/tex]200
- Entertainment: \[tex]$200 - Car Expenses: \$[/tex]300
Old Expenses: [tex]\( \$250 + \$175 + \$200 + \$200 + \$300 = \$1125 \)[/tex]
Old Net Income: [tex]\( \$1500 - \$1125 = \$375 \)[/tex]
2. Analyze each option to see their impact:
### Option A:
Antonio does not change his budget but hopes for a raise.
Net Income: \[tex]$375 (remains the same) This option relies on the uncertainty of getting a raise and does not immediately solve the problem of gathering enough money for the deposit and monthly rent. ### Option B: Reduce entertainment by \$[/tex]100 and take \[tex]$200 out of savings for the deposit. - New Entertainment Expense: \( \$[/tex]200 - \[tex]$100 = \$[/tex]100 \)
- Savings for the deposit (one-time): [tex]\( \$200 - \$200 = $0 \)[/tex]
- Include Monthly Rent: \[tex]$500 New Monthly Expenses: \( \$[/tex]250 \text{ (Food)} + \[tex]$175 \text{ (Cell Phone)} + \$[/tex]0 \text{ (Savings)} + \[tex]$100 \text{ (Entertainment)} + \$[/tex]300 \text{ (Car Expenses)} + \[tex]$500 \text{ (Rent)} = \$[/tex]1325 \)
New Net Income:
[tex]\( \$1500 - \$1325 = \$175 \)[/tex]
### Option C:
Live at his parent's house for one more month, saving his old net income.
- Monthly Savings: \[tex]$375 After one month, he will have saved: \( \$[/tex]375 + \[tex]$1125 = \$[/tex]1500 \)
This would be enough to cover both the initial \[tex]$200 deposit and one month's rent of \$[/tex]500, giving him a cushion.
### Option D:
Reduce entertainment by \[tex]$75, reduce food by \$[/tex]50, and take \[tex]$200 out of savings for the deposit. - New Entertainment Expense: \( \$[/tex]200 - \[tex]$75 = \$[/tex]125 \)
- New Food Expense: [tex]\( \$250 - \$50 = \$200 \)[/tex]
- Savings for the deposit (one-time): [tex]\( \$200 - \$200 = \$0 \)[/tex]
- Include Monthly Rent: \[tex]$500 New Monthly Expenses: \( \$[/tex]200 \text{ (Food)} + \[tex]$175 \text{ (Cell Phone)} + \$[/tex]0 \text{ (Savings)} + \[tex]$125 \text{ (Entertainment)} + \$[/tex]300 \text{ (Car Expenses)} + \[tex]$500 \text{ (Rent)} = \$[/tex]1300 \)
New Net Income:
[tex]\( \$1500 - \$1300 = \$200 \)[/tex]
By analyzing each option:
- Option A relies on the uncertain future event of getting a raise.
- Option B results in a lower net income of \$175 but allows Antonio to manage both deposit and monthly rental payments.
- Option C perfectly aligns with Antonio's goals by allowing him to save enough in one month to cover the deposit and subsequent rental payment.
- Option D results in a higher net income than Option B while effectively managing expenses to cover both the deposit and rental payments.
Among these, Option C is the best because it gives Antonio a strong financial position moving forward by completely covering his needs for the deposit and rent after just one more month of saving. However, if living with his parents for another month is not feasible, Option D would be a good second choice as it also ensures he can cover his expenses with a smaller reduction in his net income.
1. Calculate Antonio's old net income:
- Monthly Income: \[tex]$1500 - Monthly Expenses: - Food: \$[/tex]250
- Cell Phone: \[tex]$175 - Savings: \$[/tex]200
- Entertainment: \[tex]$200 - Car Expenses: \$[/tex]300
Old Expenses: [tex]\( \$250 + \$175 + \$200 + \$200 + \$300 = \$1125 \)[/tex]
Old Net Income: [tex]\( \$1500 - \$1125 = \$375 \)[/tex]
2. Analyze each option to see their impact:
### Option A:
Antonio does not change his budget but hopes for a raise.
Net Income: \[tex]$375 (remains the same) This option relies on the uncertainty of getting a raise and does not immediately solve the problem of gathering enough money for the deposit and monthly rent. ### Option B: Reduce entertainment by \$[/tex]100 and take \[tex]$200 out of savings for the deposit. - New Entertainment Expense: \( \$[/tex]200 - \[tex]$100 = \$[/tex]100 \)
- Savings for the deposit (one-time): [tex]\( \$200 - \$200 = $0 \)[/tex]
- Include Monthly Rent: \[tex]$500 New Monthly Expenses: \( \$[/tex]250 \text{ (Food)} + \[tex]$175 \text{ (Cell Phone)} + \$[/tex]0 \text{ (Savings)} + \[tex]$100 \text{ (Entertainment)} + \$[/tex]300 \text{ (Car Expenses)} + \[tex]$500 \text{ (Rent)} = \$[/tex]1325 \)
New Net Income:
[tex]\( \$1500 - \$1325 = \$175 \)[/tex]
### Option C:
Live at his parent's house for one more month, saving his old net income.
- Monthly Savings: \[tex]$375 After one month, he will have saved: \( \$[/tex]375 + \[tex]$1125 = \$[/tex]1500 \)
This would be enough to cover both the initial \[tex]$200 deposit and one month's rent of \$[/tex]500, giving him a cushion.
### Option D:
Reduce entertainment by \[tex]$75, reduce food by \$[/tex]50, and take \[tex]$200 out of savings for the deposit. - New Entertainment Expense: \( \$[/tex]200 - \[tex]$75 = \$[/tex]125 \)
- New Food Expense: [tex]\( \$250 - \$50 = \$200 \)[/tex]
- Savings for the deposit (one-time): [tex]\( \$200 - \$200 = \$0 \)[/tex]
- Include Monthly Rent: \[tex]$500 New Monthly Expenses: \( \$[/tex]200 \text{ (Food)} + \[tex]$175 \text{ (Cell Phone)} + \$[/tex]0 \text{ (Savings)} + \[tex]$125 \text{ (Entertainment)} + \$[/tex]300 \text{ (Car Expenses)} + \[tex]$500 \text{ (Rent)} = \$[/tex]1300 \)
New Net Income:
[tex]\( \$1500 - \$1300 = \$200 \)[/tex]
By analyzing each option:
- Option A relies on the uncertain future event of getting a raise.
- Option B results in a lower net income of \$175 but allows Antonio to manage both deposit and monthly rental payments.
- Option C perfectly aligns with Antonio's goals by allowing him to save enough in one month to cover the deposit and subsequent rental payment.
- Option D results in a higher net income than Option B while effectively managing expenses to cover both the deposit and rental payments.
Among these, Option C is the best because it gives Antonio a strong financial position moving forward by completely covering his needs for the deposit and rent after just one more month of saving. However, if living with his parents for another month is not feasible, Option D would be a good second choice as it also ensures he can cover his expenses with a smaller reduction in his net income.
