ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUDGETING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

If Michael pays $279 for his car payment, $120 for insurance, and $115 for gas a month; does he extend the 11% allowance is his budget for transportation if he earns a net annual salary of $47, 856?

A	yes
B	no
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -Our 50/30/20 calculator divides your take-home income into suggested spending in three categories: 50% of net pay for needs, 30% for wants and 20% for savings and debt repayment. Find out how this budgeting approach applies to your money.

Detailed explanation-2: -Remember the thumb rule: Always remember the thumb rule of not spending more than half of your annual income on a new car. For instance, if an individual earns Rs 10 lakh per annum, the ideal budget for the vehicle would be Rs. 5 lakhs.

Detailed explanation-3: -To calculate net income, take the gross income-the total amount of money earned-then subtract expenses, such as taxes and interest payments. For the individual, net income is the money you actually get from your paycheck each month rather than the gross amount you get paid before payroll deductions.

Detailed explanation-4: -Forecast lanes and volumes. Understand transportation freight rates. Account for diesel prices. Remember to plan for accessorials.

There is 1 question to complete.