Stu allocated 12% of his net monthly income of $1,768.94 for eating out.
He found he was spending too much for eating out. He wanted to reduce
his monthly expense for eating out to $150 and put the extra money in
savings. How much money could he put in savings each month by doing
that?
a. $62.27
b. $150
c. $212.27
d. $52.63
First, we need to find out how much Stu is currently spending on eating out each month:
$1,768.94 x 0.12 = $212.27
Stu wants to reduce this amount to $150 per month:
$212.27 - $150 = $62.27
Therefore, Stu could put $62.27 in savings each month by reducing his eating out expenses. Answer: a. $62.27