Question

If you are single with no children, earn $36,000/year and set a savings goal of 5% per month, each month you should save _________.

Answer 1

Each month you should save $ 150

Explanation:

First, the earnings are given per year, so we need to transform $36000/year into dollars per month. So, using a rule of three as following, we obtain:

$ 36,000 ------------- 12 months

X -------------- 1 month

Solving for X, we get:

`X=(36000*1)/(12)`

X = $ 3,000 /month

it means that earn $36,000/year is equivalent to earn $3,000/month

Now, we need to find the 5% of $3,000, this can be calculated making the following multiplication:

`3,000*(5)/(100) = 150`

Then, each month you should save $150