Calculating Sue's Bank Balance After Expenses A Financial Analysis

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In this article, we will delve into a practical mathematical problem involving managing personal finances. We will analyze a scenario where Sue has an initial bank balance and makes several transactions, including rent, a video game purchase, and a bike. Our goal is to determine Sue's final bank balance after these transactions are processed. This exercise not only reinforces basic arithmetic skills but also provides valuable insights into real-world financial management. Understanding how to track income and expenses is crucial for maintaining financial stability and planning for the future. By breaking down each transaction and calculating the remaining balance, we can gain a clearer picture of Sue's financial situation and apply these principles to our own financial planning. This article aims to provide a comprehensive and easy-to-understand analysis of Sue's bank transactions, emphasizing the importance of financial literacy and careful budgeting.

Initial Balance

Sue starts with a bank account balance of $899.83. This initial balance is the foundation upon which all subsequent transactions will be calculated. It represents the total amount of money Sue has available before any expenses are deducted. Knowing the initial balance is crucial for accurate financial tracking, as it serves as the starting point for all calculations. In personal finance, it’s always important to have a clear understanding of your starting balance, whether it’s in a checking account, savings account, or any other financial account. This figure helps you monitor your financial health and make informed decisions about spending and saving. For Sue, this $899.83 is her financial baseline, and we will now see how her various transactions impact this amount. Accurate record-keeping of this initial balance is the first step in effective financial management, allowing for a clear understanding of how expenses and income affect the overall financial picture. This meticulous approach ensures that Sue, and anyone managing their finances, can confidently track their financial progress and make necessary adjustments to maintain a healthy financial state.

Transaction Details

Sue makes the following transactions, which will affect her initial balance:

  • Rent: $353.76
  • Video Game: $32.79
  • Bike

Rent Payment

The first transaction Sue makes is a rent payment of $353.76. Rent is a significant monthly expense for many individuals, and it's crucial to account for it in a financial plan. In Sue's case, this rent payment represents a substantial portion of her initial balance. Paying rent on time is essential for maintaining housing stability and avoiding late fees or other penalties. The amount of rent paid can vary widely depending on location, property size, and amenities. For Sue, $353.76 is the cost of her housing for the month, and this expense needs to be carefully considered in her overall budget. Understanding the impact of rent on her finances allows Sue to prioritize her spending and ensure she has sufficient funds to cover this essential cost. The rent payment serves as a reminder of the importance of budgeting and financial planning to meet housing obligations. Proper financial planning involves setting aside funds specifically for rent to avoid any financial strain or potential housing issues. This diligent approach to managing rent payments is a cornerstone of responsible financial management.

Video Game Purchase

Sue also purchases a video game for $32.79. While this is a smaller expense compared to rent, it's still important to consider it in the overall financial picture. Discretionary spending, such as entertainment purchases, can add up over time and impact your budget. It’s essential to strike a balance between enjoying leisure activities and maintaining financial responsibility. For Sue, the $32.79 spent on a video game is a part of her entertainment budget, and it should be accounted for to ensure she stays within her financial limits. These smaller, non-essential purchases, when accumulated, can significantly affect one's financial health. Therefore, tracking these expenses is crucial for effective budget management. By being mindful of discretionary spending, individuals can avoid overspending and ensure they have sufficient funds for essential expenses and savings goals. This awareness helps in making informed decisions about how to allocate resources and maintain a balanced financial lifestyle. The video game purchase, while seemingly small, illustrates the importance of monitoring all expenditures, regardless of size, to ensure financial stability.

Bike Purchase

The cost of the bike is missing from the provided information. To accurately calculate Sue's final balance, we need to know the price of the bike. Let's denote the cost of the bike as 'B'. Without this value, we can only provide a partial calculation of Sue's remaining balance. The bike purchase represents a significant variable in Sue's financial transactions. Depending on the type of bike, the cost can vary widely, from a few hundred dollars for a basic model to several thousand dollars for a high-end one. This expense could be a substantial portion of Sue's remaining funds, so it's essential to consider the cost carefully. The decision to purchase a bike might also involve evaluating different financing options, such as using a credit card or taking out a loan, which would add further complexity to the financial calculation. Understanding the cost of the bike and its impact on her overall financial situation is crucial for Sue to make an informed purchasing decision. This missing information highlights the importance of having complete and accurate financial data to effectively manage one's finances. Until we know the value of 'B', the final balance calculation will remain incomplete.

Calculating the Remaining Balance

To determine Sue's remaining balance, we need to subtract her expenses from her initial balance. However, since the cost of the bike is unknown, we will represent it as 'B' and include it in our calculation.

Step 1: Subtract Rent

First, we subtract the rent payment from her initial balance:

$899.83 - $353.76 = $546.07

After paying rent, Sue has $546.07 left in her account. This initial subtraction gives us a clear picture of how much Sue has remaining after her most significant expense. Calculating this interim balance is crucial for understanding the impact of each transaction on her overall financial situation. Knowing that she has $546.07 after paying rent helps Sue make informed decisions about her remaining expenses and spending habits. This step-by-step approach to financial calculation allows for a more transparent view of her financial health. The $546.07 represents the funds available for all other expenses and potential savings. By breaking down the calculations in this manner, Sue can effectively manage her budget and ensure she has enough funds to cover her needs and wants. This careful tracking of funds after each transaction is a fundamental practice in financial management.

Step 2: Subtract Video Game Cost

Next, we subtract the cost of the video game:

$546.07 - $32.79 = $513.28

After purchasing the video game, Sue's balance is $513.28. This calculation shows the impact of discretionary spending on Sue's financial situation. While the video game purchase is a smaller expense compared to rent, it still reduces her available funds. Knowing her balance after this transaction allows Sue to assess whether her spending is in line with her budget and financial goals. The remaining balance of $513.28 represents the funds Sue has available for all her remaining expenses, including the bike purchase and any other potential costs. This ongoing tracking of expenses helps Sue maintain control over her finances and make informed decisions about her spending habits. The $32.79 spent on the video game is a reminder to consider the cumulative effect of smaller purchases on overall financial health. By being mindful of these expenses, Sue can ensure she has sufficient funds for essential needs and long-term financial goals.

Step 3: Subtract Bike Cost (Unknown)

Finally, we subtract the cost of the bike, which we are representing as 'B':

$513.28 - B = Final Balance

Without knowing the value of 'B', we cannot determine the exact final balance. This step highlights the importance of having complete information when calculating financial outcomes. The bike purchase is a critical expense that will significantly impact Sue's final balance, but without knowing the cost, we can only represent it as a variable. This situation underscores the need for accurate record-keeping and comprehensive financial data to effectively manage finances. The final balance will depend directly on the value of 'B', and Sue needs to know the cost of the bike to accurately assess her financial standing. This incomplete calculation emphasizes the importance of gathering all necessary information before making financial projections or decisions. The unknown cost of the bike serves as a practical lesson in financial planning, showing how missing information can hinder accurate financial assessments.

Determining the Final Balance

To determine Sue's final balance, we need the cost of the bike. Let's consider a few scenarios:

  • Scenario 1: If the bike costs $100

    $513.28 - $100 = $413.28

  • Scenario 2: If the bike costs $300

    $513.28 - $300 = $213.28

  • Scenario 3: If the bike costs $500

    $513.28 - $500 = $13.28

These scenarios illustrate how the cost of the bike significantly impacts Sue's final balance. Each scenario provides a potential financial outcome, depending on the bike's price. By considering these different possibilities, Sue can better understand the range of financial implications associated with her purchase. Scenario 1, where the bike costs $100, leaves Sue with a comfortable balance of $413.28. Scenario 2, with a bike costing $300, reduces her balance to $213.28. Scenario 3, where the bike costs $500, leaves Sue with a very low balance of only $13.28. These examples highlight the importance of considering the cost of significant purchases in relation to one's overall financial situation. Sue needs to assess her financial priorities and the affordability of the bike before making a final decision. This exercise in scenario planning is a valuable tool in financial decision-making, allowing individuals to anticipate the potential impact of different expenses on their financial health. The varying outcomes demonstrate the importance of budgeting and careful spending to maintain financial stability.

Conclusion

Calculating Sue's final bank balance involves subtracting all her expenses from her initial balance. The final balance calculation demonstrates the importance of tracking income and expenses to maintain financial stability. Without knowing the exact cost of the bike, we can only provide a partial calculation. However, by analyzing Sue's transactions, we can see how rent, discretionary spending (like the video game), and larger purchases (like the bike) all impact her financial situation. This exercise underscores the importance of budgeting and making informed financial decisions. Tracking expenses helps individuals understand where their money is going and allows them to make necessary adjustments to achieve their financial goals. In Sue's case, understanding the impact of each transaction on her balance allows her to plan her spending more effectively. The scenarios presented highlight the need to consider the potential financial implications of significant purchases and to prioritize expenses based on financial goals and available funds. This analysis serves as a practical example of how basic mathematical principles can be applied to real-world financial management, emphasizing the value of financial literacy and responsible spending habits.

To provide a complete answer, we need the cost of the bike. Once we have that information, we can calculate Sue's precise final balance. This final step in the calculation would give Sue a clear picture of her financial standing after all transactions are completed. The cost of the bike is the missing piece of the puzzle, and its inclusion will provide the definitive answer to Sue's financial situation. Knowing her final balance allows Sue to plan for future expenses, save for long-term goals, and make informed financial decisions. This complete financial picture is essential for effective money management and financial well-being. The exercise of calculating Sue's balance reinforces the importance of accurate record-keeping and the application of mathematical skills in personal finance. This real-world scenario illustrates the practical benefits of understanding basic financial principles and their impact on daily life.