Question

Mr. Thompson, a retiree, looks at his check register:

Mr. Thompson's yearly rent (using 52 weeks) is $.
The average grocery expense in this time period is $_____.
Knowing that he buys groceries twice monthly for an average amount, Mr. Thompson estimates his yearly expense for groceries to be 2×12×$ or $744.24.
Then, Mr. Thompson realizes there are more than 24 two-week periods in a year, so he revises his estimate using 26×______ to get the number $____ for his estimate.
Based on the calculations above, Mr. Thompson should budget $____ for food and rent per year.
If Mr. Thompson receives $506.28 twenty-four (24) times a year, his yearly income is $____.
Expressed as a percent, an estimate for rent (to the nearest tenth) is _____% and food is _____%.

A. $12,000; $5000; $744; 26; $19,344; $12,150; 506.28; 25,256; 25%; 40%
B. $6,000; $2,500; $372; 13; $9,672; $6,012.72; 504.28; 25,140; 20%; 50%
C. $7,800; $3,000; $744.24; 26; $25,540.24; $18,075; 506.28; 25,644; 26%; 25%
D. $15,600; $10,000; $1,488; 52; $39,600; $15,888; 506.28; 25,020; 33%; 67%
E. None of the above

Answer 1

Mr. Thompson's yearly grocery expense is $4,836. His budget for food and rent per year is $16,836. His yearly income is $12,150. The estimated percentage of rent to his income is 26% and the estimated percentage of food to his income is 40%.

Step-by-step explanation:

To calculate the average yearly grocery expense, Mr. Thompson estimates his monthly expense to be $372 (2 x $186, assuming he spends the same amount twice a month). However, since there are more than 24 two-week periods in a year, he revises his estimate using 26 x $186 to get a yearly estimate of $4,836. Therefore, Mr. Thompson's yearly grocery expense is $4,836.

To calculate the budget for food and rent, we add Mr. Thompson's annual rent ($12,000) to his annual grocery expense ($4,836) to get a total of $16,836.

If Mr. Thompson receives $506.28 twenty-four times a year, his yearly income is $12,150.

The estimated percentage of rent to Mr. Thompson's income is 26% (annual rent of $12,000 divided by yearly income of $12,150). The estimated percentage of food to Mr. Thompson's income is 40% (annual grocery expense of $4,836 divided by yearly income of $12,150).