3. In each case, determine if this person makes a profit or suffers a loss and the amount.

a) Tyler earns R2500 monthly and has the following expenses:
- Rent: R2750
- Water and electricity: R600
- Cell phone: R450
- Bus fare: R385
- Food: R2000



Answer :

To determine if Tyler makes a profit or suffers a loss and by how much, we need to compare his monthly earnings with his total monthly expenses. Here is a step-by-step solution:

1. Monthly Earnings:
Tyler earns R3500 each month.

2. Monthly Expenses:
- Rent: R2750
- Water and electricity: R600
- Cell phone: R450
- Bus fare: R385
- Food: R200

3. Total Expenses:
Let's add up all of Tyler's expenses:
[tex]\[ \text{Total Expenses} = \text{Rent} + \text{Water and electricity} + \text{Cell phone} + \text{Bus fare} + \text{Food} \][/tex]
[tex]\[ \text{Total Expenses} = R2750 + R600 + R450 + R385 + R200 \][/tex]
[tex]\[ \text{Total Expenses} = R4385 \][/tex]

4. Net Result (Profit or Loss):
Calculate the difference between monthly earnings and total monthly expenses:
[tex]\[ \text{Net Result} = \text{Monthly Earnings} - \text{Total Expenses} \][/tex]
[tex]\[ \text{Net Result} = R3500 - R4385 \][/tex]
[tex]\[ \text{Net Result} = -R885 \][/tex]

The net result is -R885. This means Tyler suffers a loss of R885 each month.

In summary, Tyler suffers a loss of R885 each month after accounting for his earnings and expenses.