Each month, Michael budgets $1200 for fixed expenses, $550 for living expenses, and $100 for annual expenses. His biweekly net income is $864. Which statement best describes his monthly budget? It shows a surplus of $22. It shows a deficit of $22. It shows a surplus of $122. It is balanced.

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Mathematics

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28 December, 20:27

Each month, Michael budgets $1200 for fixed expenses, $550 for living expenses, and $100 for annual expenses. His biweekly net income is $864. Which statement best describes his monthly budget? It shows a surplus of $22. It shows a deficit of $22. It shows a surplus of $122. It is balanced.

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Kathleen Fitzgerald · Answer 1

Answer: It shows a deficit of $22.

Step-by-step explanation:

His biweekly net income is $864. This means that his income in two weeks is $864. There are 4 weeks in a month. Therefore, his monthly income is 2*864 = $1728

Each month, Michael budgets $1200 for fixed expenses and $550 for living expenses. This means that his total monthly expenses will be the sum of his fixed expenses and living expenses. Therefore

Monthly expenses = 1200 + 550 = $1750. This is lower than his monthly income by a deficit of

1728 - 1750 = - $22