Ok. So how much money will they make together annually? And once all the other expenses are paid, how much is left for entertainment?

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- November 12th 2005, 08:41 AM #1

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## Help

Jim and Alice Lange, employees at Wal-Mart, have put themselves on a strict budget. Their goal at year’s end is to buy a boat for $15,000 in cash. Their budget includes the following:

40% food and lodging 20% entertainment 10% educational

Jim earns $1,900 per month and Alice earns $2,400 per month. After one year, will Alice and Jim have enough cash to buy the boat?

Anyone no how to figure out this answer!!!!!

- November 12th 2005, 11:27 AM #2

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- November 12th 2005, 11:45 AM #3

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" Jim and Alice Lange, employees at Wal-Mart, have put themselves on a strict budget. Their goal at year’s end is to buy a boat for $15,000 in cash. Their budget includes the following:

40% food and lodging 20% entertainment 10% educational

Jim earns $1,900 per month and Alice earns $2,400 per month. After one year, will Alice and Jim have enough cash to buy the boat "

That means they will spend (40% +20% +10% =) 70% of their monthly earnings.

Hence, per month, they will save 30% only of their earnings.

Per month,

Savings = 30% of (1900 +2400) = 0.30 * 4300 = $1290.

After one year or 12 months,

Savings = 12 * 1290 = $15,480.

That is more than the $15,000 cost of the boat in cash.

Therefore, yes, they can buy that boat after one year.