$ Balancing Your Budget Activity $

Questions

These are sample questions you will be asked at the end of the project. Keep these in mind as you do the project. If you have any questions, ask Mr. Bee.

1) Tell me some information about your project…

a. What job did you choose? Why did you choose that occupation?

b. Where are you living? Why did you pick that city / state? Tell me somethings about your apartment too.

c. What kind of car did you get? Any particular reason why you picked that car?

2) a. What was your monthly salary after taxes?

b. What would be your annual salary after taxes? (please show work for full credit)

3) a. How much left-over money do your have?

b. You want to invest your left-over money into a certificate of deposit (CD) at a bank. You get a 3-year CD that is going to pay 4.5% in simple interest. Using the formula I=Prt, how much money in interest will you earn? (please show work for full credit)

c. How much money will be in your account after the 3 years? (please show work for full credit)

4) You decide to join your local recreation center. You have to pay a one-time membership fee of $250. The monthly rate is $30 per month.

a. Write an equation in slope-intercept form for the total cost of being a member at the rec center, y, after x months.

b. What would be the total cost of being a member for one year? (please show work for full credit)

5) The budget table automatically calculated your savings by doing 5% of your gross monthly income.

a. Show the math behind what the budget table did; calculate 5% of your gross monthly income. This number should be the same as your savings on the budget table. (please show work for full credit)

b. Re-do the problem from part a, but change it to 8% of your gross monthly income. (please show work for full credit)

c. Do you have enough left-over money to increase your savings from 5% to 8%? Please explain.

6) a. How much left-over money do you have?

b. If you could increase one expense, what would it be and why?

7) Maintaining a monthly budget is an individual choice. When you get older, do you think you’ll create a budget for yourself? Why or why not? If you do, are disciplined to live by it?