Question

1. Imagine you have $15,000 saved in a personal account to help supplement your
income during the first year your business is open. Per month, the rent on your
current apartment is $500, utilities are generally about $45, gas for your car is about
$120, and food costs are about $350. In September, you know your rent will increase
to $525 per month. Create a budget that divides the $15,000 across these categories

Answer 1

Answer:

Savings: $15,000

Fixed Expenses:

Rent: $500 -> $525

Variable Expenses:

Utilities: $45

Gas: $120

Food: $250

Annual Fees/ Budget

Rent- $525*12(months) = (annually) $6,300

Utilities- $45*12= $540

Gas- $120*12= $1,440

Food- $350*12= $4,200

Total expenses: $12,480

Total savings: $2,520

Explanation:

Since they didn't give a starting month, it's best to calculate the change in rent price into the monthly -> annually fees.