Question

Cathy has a salary of $1,500 per month and she divides her income in the following way:

Expense


Amount of Money
Savings $475
Car payment and Insurance $425
Phone and internet $175
Food $250
Clothes $75
Misc. $100



Which statement is true?

Cathy spends 50% of her salary on savings and car payment and insurance combined.
Cathy spends 10% of her salary on phone and internet.
Cathy spends 5% of her salary on clothes.
Cathy spends 15% of her salary on food.

Answer 1

Statement #3 is correct.

Explanation:

Statement #3 is correct because 5% of 1500, which is Cathy's salary per month, equals $75. Statement #3 says that Cathy spends 5% of her salary on clothes, which equals $75, so that checks out