Question

After she creates the budget above, Zoe moves in with a roommate so she can save money for a car. Her rent is now 25 percent of her salary. Which of these should she do to buy a car quickly?A. Increase savings to 15 percent and increase entertainment to 20 percent.B. Increase savings to 15 percent and increase gas to 15 percent.C. Increase savings to 25 percent and decrease clothing to 10 percent.D. Increase savings to 30 percent

Answer 1

Answer:

C. Increase savings to 25 percent and decrease clothing to 10 percent.

Explanation:

Zoe intends to buy a car and to enable her save she moves in with a roommate. Her rent will now take 25% of her income, this amount will remain constant during her stay.

She has 75% left. Zoe should increase her savings to 25% and reduce money spent on clothing to $10.

This will give her more savings to get her car.