This chart shows Dan's budget:

\begin{tabular}{|c|c|c|}
\hline
Item & Amount Budgeted & Amount Spent \\
\hline
Internet & \[tex]$35 & \$[/tex]35 \\
\hline
Food & \[tex]$100 & \$[/tex]95 \\
\hline
Rent & \[tex]$500 & \$[/tex]500 \\
\hline
Discretionary Spending & \[tex]$100 & \$[/tex]140 \\
\hline
Income & \$750 & - \\
\hline
\end{tabular}

Did Dan stay on budget this month? Why or why not?

A. Yes, Dan spent as much as he earned.
B. No, Dan should lower his savings account contribution.
C. Yes, Dan used his savings to cover extra expenses.
D. No, Dan should reduce his discretionary spending.



Answer :

Let's analyze Dan's budget and spending step-by-step.

1. Collecting Budget and Spending Data:
- Internet: Budgeted \[tex]$535, Spent \$[/tex]535
- Food: Budgeted \[tex]$100, Spent \$[/tex]595
- Rent: Budgeted \[tex]$500, Spent \$[/tex]500
- Discretionary spending: Budgeted \[tex]$100, Spent \$[/tex]140

2. Calculating Total Budgeted and Total Spent Amounts:
- Total Amount Budgeted:
[tex]\[ 535 \, (\text{internet}) + 100 \, (\text{food}) + 500 \, (\text{rent}) + 100 \, (\text{discretionary}) = 1235 \][/tex]
- Total Amount Spent:
[tex]\[ 535 \, (\text{internet}) + 595 \, (\text{food}) + 500 \, (\text{rent}) + 140 \, (\text{discretionary}) = 1770 \][/tex]

3. Income:
- Dan's income is \[tex]$5750. 4. Comparison Against Budget: - Compare total spent (\$[/tex]1770) with total budgeted (\[tex]$1235): \[ 1770 > 1235 \] Dan spent more than he had budgeted for. 5. Comparison Against Income: - Compare total spent (\$[/tex]1770) with income (\$5750):
[tex]\[ 1770 <= 5750 \][/tex]
Dan spent less than his income.

Thus, Dan exceeded his budget but did not exceed his income. Based on these observations:

- Dan did not stay within his budget.
- He was able to cover his extra expenses using his income, indicating he possibly used his savings.

Therefore, the correct answer is: Yes, Dan used his savings to cover extra expenses.