Harold makes $2500.00 a month from his job. His rent is $700.00, his car payment is $300.00, his utilities cost 1/2 the amount of his car payment and he spends $50.00 on groceries. He wants to put half of the remaining money into a retirement account. How much money will that leave him?
Thoughts? Step-by-step reasoning:
His utilities cost 1 / 2 the amount of his $250.00 car payment so his utilities cost 250 / 2 = $125.00. All total, his bills cost him 775 + 250 + 125 + 50 = $1,200. He makes $2500 a month and his bills cost $1200 a month so that leaves him with 2500 - 1200 = $1300.00. He wants to put half of $1300 into a retirement account so he will invest 1300 / 2 = $650 into his retirement account. He had 1300 and puts $650 into his retirement account so that leaves him with 1300 - 650 = $650 remaining.
Thus, the answer is 650.