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  1. #1
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    Question 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!!!!!
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  2. #2
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    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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  3. #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.
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