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Consider Adam's income statement.

Adam Stewart
Monthly Income Statement
September 2013

Income (after taxes):
- Wages: [tex]$3,100
\ \textless \ strong\ \textgreater \ Total income:\ \textless \ /strong\ \textgreater \ $[/tex]3,100

Expenses:
- Food: [tex]$150
- Clothing: $[/tex]70
- Rent: [tex]$850
- Medical Insurance: $[/tex]90
- Transportation: [tex]$110
- Car Insurance: $[/tex]40

Total expenses: [tex]$1,310
\ \textless \ strong\ \textgreater \ Net income (income - expenses):\ \textless \ /strong\ \textgreater \ $[/tex]1,790

Which shows how to calculate Adam's net income?

A. [tex]$1,310 - $[/tex]3,100 = -[tex]$1,790
B. $[/tex]3,100 + [tex]$1,310 = $[/tex]4,710
C. [tex]$3,100 - $[/tex]1,310 = [tex]$1,790
D. $[/tex]4,710 - [tex]$3,100 = $[/tex]1,610



Answer :

GinnyAnswer
To determine Adam's net income, we need to follow these steps:

1. List all the expenses:
- Food: [tex]$150 - Clothing: $[/tex]70
- Rent: [tex]$850 - Medical Insurance: $[/tex]90
- Transportation: [tex]$110 - Car Insurance: $[/tex]40

2. Calculate the total expenses:
- Total expenses = Food + Clothing + Rent + Medical Insurance + Transportation + Car Insurance
- Total expenses = [tex]$150 + $[/tex]70 + [tex]$850 + $[/tex]90 + [tex]$110 + $[/tex]40
- Total expenses = [tex]$1310 3. Identify the total income: - Wages = $[/tex]3100

4. Calculate the net income:
- Net income = Total income - Total expenses
- Net income = [tex]$3100 - $[/tex]1310
- Net income = [tex]$1790 Given the calculations, we see that the correct way to find Adam's net income is: $[/tex]\[tex]$ 3,100 - \$[/tex] 1,310 = \[tex]$ 1,790$[/tex]

So, the correct answer is:
[tex]$\$[/tex] 3,100 - \[tex]$ 1,310 = \$[/tex] 1,790$