Expert: Josh - 7/17/2007

Question
Problem
Upon completion of his degree, Michael is hired as a technician at the rate of $900 every two weeks (after taxes).  His monthly bills, payable on the first of the month, are:

  Rent         $500
  Electricity          80
  Gas (heat)          65
  Car payment        300
  Car insurance              70
  Fuel for car          80
  Groceries        150
  Credit cards        200

Question: Given Michael’s current expenses, how much money is available weekly for leisure spending?


Answer
The answer may vary depending on the assumptions we make.

Roughly speaking, there are 52 weeks in a year. Dividing this by 12 months, there 4.333...(13/3) weeks per month. On average, Michael earns (13/3)*900 dollars per month.......[income]

Add up all items in the monthly bill and call this [expenditure]

Subtracting expenditure from the income tells us how much money is available for leisure spending per month.

Dividing this number by 4.333...(the average number of weeks per month) we get the amount available weekly for leisure spending.