Question

Korey is planning to open a comic book store. He has developed the following expense breakdown for set-up and operation for the first year. Korey has $8,500 in savings and $25,000 in inheritance money to use to open his store. If Korey doesn’t make any changes to his initial expenses, what percent of the total set-up and operation expense will have to be funded through loans or investors?

Answer 1

b.

No, Korey will be short $1,600.

Explanation:

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Answer 2

The total amount of cash money that Korey have is the summation of his savings and his inheritance which is equal to Korey cash = $8500 + $25,000.
To identify the amount needed to be funded by loans or investors, we need to know first the total of expenses plus set-up plus operation expenses and other expenses to operate the bookstore subtracted by his savings.

Thus, let "AL" be the amount needed through loans while letting "TE" for total expenses.

AL=TE-($8500+$25000)
AL=TE-$33,500

This is the equation needed to determine the amount needed.