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A common example of an arithmetic situation in real life is budgeting for monthly expenses. For instance, if you earn $3,000 a month and have fixed expenses like rent ($1,200), groceries ($300), and utilities ($200), you can use arithmetic to calculate your remaining disposable income. By adding your fixed expenses and subtracting the total from your monthly income, you can determine how much you have left for savings or discretionary spending. This practical application of addition and subtraction helps in managing finances effectively.

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