Amy is analyzing a job offer.
| Amy's Salary Analysis | | | |
| :------------------ | :---------------------------------------- | :---------------------- | :-------------------------- |
| Annual Salary | Benefits | Average Monthly Rent | Average Monthly Utility Costs |
| $48,500 | 401 K matched up to $2,500/year, $5,000 in bonuses | $1,100 | $200 |
How much should she expect to pay on rent and utilities each year?
A. $1,300
B. $2,400
C. $13,200
D. $15,600
Answer (2)
Calculate the annual rent cost: 1100 × 12 = 13200 .
Calculate the annual utility cost: 200 × 12 = 2400 .
Calculate the total annual cost: 13200 + 2400 = 15600 .
Explanation
Calculate Annual Rent First, we need to calculate the annual cost of rent. The monthly rent is $1,100, so we multiply this by 12 to find the annual cost:
Annual Rent Cost 1 , 100 × 12 = 13 , 200
Calculate Annual Utilities Next, we calculate the annual cost of utilities. The monthly utility cost is $200, so we multiply this by 12 to find the annual cost:
Annual Utility Cost 200 × 12 = 2 , 400
Calculate Total Annual Cost Finally, we add the annual rent and annual utility costs to find the total annual cost:
Total Annual Cost 13 , 200 + 2 , 400 = 15 , 600
Examples
Understanding your yearly expenses, like rent and utilities, is crucial for budgeting and financial planning. For example, if Amy knows her annual rent and utility costs are $15,600, she can better allocate her salary and bonuses throughout the year. This helps her make informed decisions about saving, investing, and other financial goals, ensuring she stays within her budget and achieves her financial objectives.
Amy's total annual cost for rent and utilities is $15,600, calculated by adding her annual rent of $13,200 and annual utilities of $2,400. Therefore, the correct option is D. $15,600.
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