Solve the problem.
-Suppose your after-tax income is $37,050. Your annual expenses are $32,426 for rent, $6572 for food and household expenses, $1265 for interest on credit cards, and $7396 for entertainment, travel, and
Other. You expect to get a 25% raise next year. Will this affect the outcome?

Question

Quizplus · Accepted Answer

A 25% raise on $37,050 results in an increase of $9,262.50, making the new income $46,312.50. The total expenses are $32,426 + $6,572 + $1,265 + $7,396 = $47,659. Currently, there's a deficit, but with the raise, the income is closer to covering expenses, indicating a significant positive impact, although it still doesn't fully cover the expenses. The choice of wording in the options may suggest a misunderstanding in the explanation; however, given the options, B is the closest to a correct interpretation under the assumption that "create a surplus" means significantly improving the financial situation towards balancing the budget.

Solve the Problem. -Suppose Your After-Tax Income Is $37,050. Your Annual Expenses Are