Question

6. A family's income amount is $25,000. They budget out of their income:

Food: 20%
Shelter: 25%
Clothing: 15%
How much money is allotted for each of these items?
Food
Shelter
Clothing

Answer 1

To find out how much money is allotted for each of these items, we can multiply the percentage of the income allocated to each item by the total income.

Food: 20% of $25,000 = $25,000 x 0.20 = $5000

Shelter: 25% of $25,000 = $25,000 x 0.25 = $6250

Clothing: 15% of $25,000 = $25,000 x 0.15 = $3750

So the family has $5000 for food, $6250 for shelter and $3750 for clothing.