A project has a total budget of $100,000 for one year. $40,000 will be used immediately to purchase equipment. How would you find the project’s monthly budget after this purchase?
A. 100,000×12-40,000
B. 100,000-40,000
C. (100,000+40,000)/12
D. 100,000-(40,000)/12
E. (100,000-40,000)/12
The Correct Answer and Explanation is :
The correct answer is E. (100,000 – 40,000)/12.
Explanation:
To solve this problem, we need to figure out how much money remains in the budget after the initial purchase of equipment and then break it down into monthly allocations for the rest of the year.
- Total Budget for the Year:
The project starts with a budget of $100,000 for the full year. - Equipment Purchase:
Immediately, $40,000 of this budget is spent on equipment. This means the remaining amount of money available for the rest of the year is the difference between the total budget and the equipment purchase. [
\text{Remaining Budget} = \text{Total Budget} – \text{Equipment Purchase}
]
[
\text{Remaining Budget} = 100,000 – 40,000 = 60,000
] - Monthly Budget:
The remaining $60,000 needs to be allocated across the 12 months of the year. To find the monthly budget, divide the remaining budget by 12 (since there are 12 months in a year). [
\text{Monthly Budget} = \frac{\text{Remaining Budget}}{12}
]
[
\text{Monthly Budget} = \frac{60,000}{12} = 5,000
]
Thus, the monthly budget for the project after the equipment purchase is $5,000 per month for the remaining 12 months.
Why option E is correct:
- Option E: ((100,000 – 40,000)/12) correctly calculates the remaining budget after the equipment purchase, and then divides that remaining amount by 12 to find the monthly budget.
Why other options are incorrect:
- Option A: (100,000 \times 12 – 40,000) is incorrect because multiplying the total budget by 12 does not make sense; it overestimates the amount of money available.
- Option B: (100,000 – 40,000) gives the remaining budget after the equipment purchase but does not divide it by 12 to allocate it monthly.
- Option C: ((100,000 + 40,000)/12) is incorrect because adding $40,000 to the total budget incorrectly assumes additional funding, which does not apply here.
- Option D: (100,000 – (40,000)/12) is incorrect because it divides $40,000 by 12 before subtracting from the total budget, which does not correctly reflect the problem scenario.
Thus, option E is the correct way to find the monthly budget after the equipment purchase.