Question

If you have budgeted 12% of your monthly income for groceries, how much can you spend on groceries if you earn $950 bi-weekly? A. $190 B. $2,280 C. $114 D. $228

Answer 1

If you earn $950 bi-weekly, you earn 2 x 950 = $1900 per month. If you have budgeted 12% of your monthly income for groceries you need to find 12% of $1900: (1900 / 100) x 12 = 228. Answer: you can spend $228 a month on groceries.

Answer 2

To calculate this you would need to calculate your monthly income. Because most months are made up of around four weeks you would need to double your $950 bi-weekly (every other week) income because you get paid twice a month. This would result in a monthly income of $1,900. After this you would need to take 12% of that monthly income so multiply $1,900 by 0.12 to come up with D. $228