Question

Suppose you decide to put 20% of your paycheck into savings. If you made $1,500 last month, how much money should you deposit into your savings account?

A) $300

B) $500

C) $750

D) $1,200

Answer 1

To find out how much to save from a $1,500 paycheck at a 20% savings rate, multiply the paycheck amount by 0.20, leading to a deposit of $300 into savings.

Step-by-step explanation:

To calculate the amount you should deposit into your savings account, you need to work out 20% of your $1,500 paycheck. The calculation for this is to multiply your paycheck by the percentage you want to save, converted into decimal form.

To convert a percentage to a decimal, you divide it by 100. Therefore, 20% becomes 0.20. Now, you can calculate the savings as follows:

$1,500 × 0.20 = $300

So, you should deposit $300 into your savings account if you want to save 20% of your paycheck.