- Identify the total monthly income of \(\$2,750.00\).
- Calculate the total monthly expenses by summing each listed expense, resulting in \(\$2,556.76\).
- Subtract total expenses from total income to find the net income: \(\$2,750.00 - \$2,556.76 = \$193.24\).
- Confirm that the calculated net income matches the provided table value, which is \(\boxed{\$193.24}\).
Explanation
- Analyzing Income and Expenses
To verify Olya's monthly net income, we must first determine her total monthly income and her total monthly expenses based on the provided data. The total income is given as a single source: wages of \(\$2,750.00\). The list of expenses includes: Rent (\(\$850.00\)), Utilities (\(\$236.54\)), Entertainment (\(\$410.00\)), Food (\(\$220.00\)), Cell Phone (\(\$114.98\)), Credit Card #1 (\(\$56.79\)), Credit Card #2 (\(\$38.45\)), Car Insurance (\(\$120.00\)), Car Payment (\(\$260.00\)), and School Loan (\(\$250.00\)). Net income is calculated by subtracting the total expenses from the total income.
- Calculating Total Expenses
We calculate the total expenses by summing all the individual items:
\(\text{Total Expenses} = 850.00 + 236.54 + 410.00 + 220.00 + 114.98 + 56.79 + 38.45 + 120.00 + 260.00 + 250.00\).
Adding these values step-by-step:
\(850 + 236.54 = 1086.54\)
\(1086.54 + 410 = 1496.54\)
\(1496.54 + 220 = 1716.54\)
\(1716.54 + 114.98 = 1831.52\)
\(1831.52 + 56.79 = 1888.31\)
\(1888.31 + 38.45 = 1926.76\)
\(1926.76 + 120 = 2046.76\)
\(2046.76 + 260 = 2306.76\)
\(2306.76 + 250 = 2556.76\)
So, the total expenses are \(\$2,556.76\).
- Calculating Net Income and Verifying the Result
Now we subtract the total expenses from the total income to find the net income:
\(\text{Net Income} = \text{Total Income} - \text{Total Expenses}\)
\(\text{Net Income} = \$2,750.00 - \$2,556.76 = \$193.24\).
Comparing this to the value listed in the table, we see that the calculation is correct. The net income is indeed \(\boxed{\$193.24}\).
Examples
Understanding how to track income and expenses is a fundamental skill for personal finance management. By calculating net income, individuals can identify how much money they have left over each month after paying for necessary costs, which can then be used to pay off debts, build savings, or plan for future goals. This simple arithmetic approach allows for clear oversight of one's financial situation.