Amy is going to spend what she saves from her rent budget and entertainment. How much will she have for entertainment each month?
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$960 per month on her entertainment budget
If Amy decides to live with her parents or a relative, she will save $8,640 compared to living on campus over the 9-month period ($12,798 living on campus minus $4,158 living with a relative).
Since we are wondering what she can now use for entertainment each month, we divide the number of dollars saved from living with a relative by 9 months.
$8,640 / 9 months = $960 per month
Amy is now able to reallocate $960 per month on her entertainment budget since she currently doesn't have an entertainment budget listed.