Question

Your family has an annual income of $57,000 and these monthly expenses: mortgage ($1100), car payment ($375), food ($900), utilities ($240), and credit cards ($220). What percent of your family's annual income does the total amount of the monthly expenses represent?

Answer 1

The family's total monthly expenses are $2835. Over a year, this amounts to $34,020. These expenses represent roughly 59.68% of the family's annual income of $57,000.

Step-by-step explanation:

To determine what percent of the family's annual income the total monthly expenses represent, first we need to calculate the total monthly expenses and then compare this to the annual income. Starting with the monthly expenses, we have mortgage ($1100), car payment ($375), food ($900), utilities ($240), and credit cards ($220). The sum of these expenses is:

• Mortgage: $1100
• Car payment: $375
• Food: $900
• Utilities: $240
• Credit cards: $220

Adding these together yields a total of $2835 per month. Over a year, the expenses add up to $2835 * 12 months = $34,020. To find out what percentage this is of the annual income of $57,000, we use the formula:

Percentage = (Total Yearly Expenses / Annual Income) * 100

Percentage = ($34,020 / $57,000) * 100 = approximately 59.68%

Therefore, the total monthly expenses represent approximately 59.68% of the family's annual income.