Sue's bank account has a balance of $899.83 before she starts spending money. She makes the following transactions:
| Transaction | Cost ($) |
| ---------------- | -------- |
| Rent | 353.76 |
| Video game | 32.79 |
| Bike maintenance | 60.26 |
| Jacket | 55.62 |
| Rug | 80.40 |
| Night out | 35.77 |
Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this?
A. Yes, she can make the purchase and have money left over.
B. Yes, but doing so will clear out her account.
C. No, making that purchase will overdraw her account.
D. No, she is overdrawn already.
Answer (2)
Sue's remaining balance after expenses is $281.23. After attempting to purchase the TV for $305.22, she would be overdrawn by $23.99. Therefore, she cannot afford the TV, leading to option C: No, making that purchase will overdraw her account.
;
Calculate Sue's total expenses: T o t a lE x p e n ses = $618.60 .
Determine Sue's remaining balance after these expenses: R e mainin g B a l an ce = $281.23 .
Calculate Sue's balance after buying the TV: F ina lB a l an ce = − $23.99 .
Since the final balance is negative, Sue cannot afford the TV, and making that purchase will overdraw her account: N o , makin g t ha tp u rc ha se w i ll o v er d r a w h er a cco u n t . .
Explanation
Initial Balance Sue starts with a bank balance of $899.83 . We need to determine if she can afford to spend $305.22 on a TV after accounting for her other expenses.
Calculating Total Expenses First, let's calculate Sue's total expenses before considering the TV. We sum up the costs of rent, video game, bike maintenance, jacket, rug, and night out: T o t a lE x p e n ses = 353.76 + 32.79 + 60.26 + 55.62 + 80.40 + 35.77
Total Expenses Value The total expenses are: T o t a lE x p e n ses = $618.60
Calculating Remaining Balance Next, we calculate Sue's remaining balance after these expenses: R e mainin g B a l an ce = I ni t ia lB a l an ce − T o t a lE x p e n ses = 899.83 − 618.60
Remaining Balance Value Sue's remaining balance is: R e mainin g B a l an ce = $281.23
Calculating Final Balance Now, let's see if Sue can afford the TV. We subtract the cost of the TV from her remaining balance: F ina lB a l an ce = R e mainin g B a l an ce − T V C os t = 281.23 − 305.22
Final Balance Value The final balance after buying the TV would be: F ina lB a l an ce = − $23.99
Conclusion Since the final balance is negative, Sue cannot afford the TV. Buying the TV would overdraw her account.
Examples
Imagine you're managing your monthly budget. This problem is similar to calculating whether you can afford a new purchase after paying for essential expenses like rent, utilities, and food. By tracking your income and expenses, you can determine if you have enough money for discretionary spending or if you need to save more. This type of budgeting helps you make informed financial decisions and avoid overspending.
