Pam is preparing for a trip to the Philippines. She has set aside money for everything that she needs to have, but there are several other items which, while not strictly necessary, she would like to take with her. The following table shows the money that Pam has already spent or allocated, with prices listed in Philippine pesos (P).
| Expense | Cost (P) |
| :------------ | :------------- |
| Transportation | 10,804 |
| Hostel | 9,773 |
| Food budget | 11,229 |
| Sightseeing budget | 24,615 |
Pam's total budget is P 77,500. Which of the following additional items can Pam afford?
I. brand-new walking shoes, P 6,865
II. ticket upgrade to first class, P 15,149
III. electronic Tagalog/English dictionary, P 13,255
A. only I
B. I or III, but not both
Answer (2)
Pam can afford all three additional items with her remaining budget of P 21,079. However, based on the options given in the question, the best choice is that she can afford I or III, but not both. This suggests a limitation not reflected in her actual budget, making the question slightly misleading.
;
Calculate total allocated expenses: T o t a l A ll oc a t e d = 10804 + 9773 + 11229 + 24615 = 56421 .
Calculate remaining budget: R e mainin g B u d g e t = 77500 − 56421 = 21079 .
Check affordability: Pam can afford shoes (P 6,865), upgrade (P 15,149), and dictionary (P 13,255) since her remaining budget is P 21,079.
Determine the correct option: Since Pam can afford all three items, but the options are limited, there seems to be an error in the question or the provided options. However, based on the calculations, Pam can afford all three items individually.
Explanation
Calculate Total Allocated Expenses First, let's calculate Pam's total allocated expenses: Transportation (P 10,804), Hostel (P 9,773), Food budget (P 11,229), and Sightseeing budget (P 24,615). We add these up to find the total amount Pam has already allocated.
Total Allocated T o t a l A ll oc a t e d = 10804 + 9773 + 11229 + 24615 = 56421
Calculate Remaining Budget Next, we determine Pam's remaining budget by subtracting her total allocated expenses from her total budget of P 77,500.
Remaining Budget R e mainin g B u d g e t = 77500 − 56421 = 21079
Checking Affordability Now, let's see which additional items Pam can afford. We need to check if her remaining budget is greater than or equal to the cost of each item.
Affording Shoes Item I: Brand-new walking shoes cost P 6,865. Since P 21,079 > P 6,865, Pam can afford the shoes.
Affording Upgrade Item II: A ticket upgrade to first class costs P 15,149. Since P 21,079 > P 15,149, Pam can afford the ticket upgrade.
Affording Dictionary Item III: An electronic Tagalog/English dictionary costs P 13,255. Since P 21,079 > P 13,255, Pam can afford the dictionary.
Determining the Correct Option Since Pam can afford all three items individually, we need to determine which combination of items she can afford based on the given options. Option a. states 'only I', which is incorrect because she can afford more than just item I. Option b. states 'I or III, but not both', which is also incorrect because she can afford both I and III, and also II. However, the question asks which of the following additional items can Pam afford, not which combination she must choose. Since she can afford all three individually, and the options provided are limited, we must consider if there's a combination that fits the given choices. She can afford I, and she can afford III.
Final Answer Therefore, Pam can afford the brand-new walking shoes (I), the ticket upgrade to first class (II), and the electronic Tagalog/English dictionary (III). However, given the options, the most appropriate answer is that she can afford I or III, but not both is incorrect because she can afford both. The question is poorly phrased, but based on the calculations, she can afford all three items. However, since we must choose between the given options, and she can afford I, and she can afford III, but not necessarily both exclusively , the best answer among the choices is a. only I is incorrect.
Conclusion Since Pam can afford all three items, but the options are limited, and option a is incorrect, and option b is incorrect, there seems to be an error in the question or the provided options. However, based on the calculations, Pam can afford all three items individually.
Examples
Budgeting is a crucial skill in personal finance. Imagine you're planning a birthday party. You have a total budget, and you need to allocate funds for different aspects like venue, decorations, food, and entertainment. By calculating the cost of each component and subtracting it from your total budget, you can determine how much money you have left for additional items or upgrades. This process ensures you stay within your financial limits and make informed decisions about where to allocate your resources, just like Pam planning her trip!
