Sherri got a new job as a teacher for the local school. her rent is going to be 40% of her income, she will save 10% each month, she plans to use 40% of her income on other fixed expenses, and will use 20% of her income to pay for flexible expenses such as going out with friends.

what mistake is sherri making?

40% of her income is going to rent.

she is making less than she is spending.

she is using 40% of her income on other fixed expenses.

she is saving 10% of her income each month.

The mistake she is making is that she is making less than she is spending

Step-by-step explanation:

Step 1: Determine her total income

Let her total income be x

Step 2: Determine amount of each expense

The amount of each expense can be expressed;

Amount of each expense=percentage of total expense×total income

a). Rent

percentage expense on rent=40%

total income=x

Amount of rent=(40/100)×x=0.4 x

b). Savings

percentage expense on savings=10%

Amount of savings=(10/100)×x=0.1 x

c). Fixed expenses

percentage fixed expense=40%

Amount of fixed expenses=(40/100)×x=0.4 x

d). Flexible expenses

percentage flexible expense=20%

Amount of flexible expenses=(20/100)×x=0.2 x

Step 3: Calculate total expenses

Total expenses=Amount of flexible expenses+fixed expenses+amount of savings+amount of rent

replacing;

Total expenses=(0.2 x+0.4 x+0.1 x+0.4 x)=1.1 x

Step 4: Get remaining amount of her income

Net income=(x-1.1 x)=-0.1 x

This means that her expenses exceed her income by -0.1 x. The mistake she is making is that she is making less than she is spending

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step-by-step explanation: