To calculate the Adjusted Monthly Income:
\[ AMI = GI - D \]
Where:
Adjusted monthly income is the amount of income that remains after all allowable deductions have been subtracted from the gross monthly income. This figure is often used to determine eligibility for various financial programs, loans, or benefits, as it provides a more accurate representation of an individual’s or household’s financial situation.
Let's assume the following values:
Step 1: Subtract the total deductions from the gross monthly income:
\[ AMI = 5000 - 1500 = 3500 \]
The adjusted monthly income is $3500.
