Each month Marco gets $\$1,730.69$ from his company pension and $\$1,576.33$ from Social Security. His living expenses are about $\$3,840$ a month. About how much savings money will he need each month to cover expenses? Round your answer to two decimal places.
To determine the amount of money Marco needs from his savings each month, we first need to calculate his total monthly income. Marco receives two forms of income: a company pension of \(\$1,730.69\) and Social Security benefits of \(\$1,576.33\). We calculate his total monthly income by summing these two amounts:
\[ \text{Total Income} = \$1,730.69 + \$1,576.33 = \$3,307.02 \]
Thus, Marco's total guaranteed monthly income is \(\$3,307.02\).
Next, we identify Marco's total monthly living expenses, which are given as \(\$3,840.00\). To find the amount of savings he needs to withdraw to cover these expenses, we subtract his total monthly income from his total living expenses:
\[ \text{Savings Needed} = \text{Total Expenses} - \text{Total Income} \]
\[ \text{Savings Needed} = \$3,840.00 - \$3,307.02 = \$532.98 \]
Therefore, Marco needs to withdraw \(\$532.98\) from his savings each month to cover his expenses.
This type of calculation is essential for personal financial planning. For example, if you are budgeting for college, you might compare your monthly income (from a part-time job or scholarships) against your expected monthly costs (rent, food, books) to determine how much you need to withdraw from your savings account each month. Understanding these basic subtractions helps maintain financial stability and ensures that you don't run out of money before the end of the month.