- Identify all individual expenses: Rent (\$350), Utilities (\$100), Food (\$150), Entertainment (\$75), Bus Pass (\$25), and College Savings (\$300).
- Sum the expenses: \(\$350 + \$100 + \$150 + \$75 + \$25 + \$300 = \$1000\).
- Compare the result with the given options and identify that the required income is \(\$1000\).
- The correct choice is \(\boxed{A}\).
Explanation
- Analysis of Budgeted Expenses
The task is to determine the total monthly income required based on a set of budgeted expenses. The listed expenses are:
- Rent: \(\$350\)
- Utilities: \(\$100\)
- Food: \(\$150\)
- Entertainment: \(\$75\)
- Bus Pass: \(\$25\)
- College Savings: \(\$300\)
To find the total required income, we must sum all these individual budgetary items.
- Calculating the Total Income Required
We calculate the total income by adding the individual expenses:
\[\text{Total Income} = 350 + 100 + 150 + 75 + 25 + 300\]
Let's group the terms to simplify the addition:
\[\text{Total Income} = (350 + 150) + (100) + (75 + 25) + (300)\]
\[\text{Total Income} = 500 + 100 + 100 + 300\]
\[\text{Total Income} = 600 + 100 + 300 = 700 + 300 = 1000\]
The calculated total income needed is \(\$1000\).
- Conclusion and Choice Selection
Comparing our calculated total of \(\$1000\) with the given options:
A\(\$1000\)
B\(\$950\)
C\(\$1125\)
D\(\$850\)
The calculated total perfectly matches option (a). Thus, the minimum income required to cover these expenses is \(\$1000\). Therefore, the correct choice is A. The final answer is \(\boxed{A}\).
Examples
Budgeting is a fundamental skill in personal finance. For example, if you are planning to rent an apartment and pay for college, listing out all your fixed and variable costs allows you to calculate exactly how much money you need to earn each month to stay financially secure. By ensuring your income covers all your expenses—like the rent, food, and savings calculated here—you can make informed decisions about your lifestyle and financial goals.