Final answer:
To find John's budget, we set up the equation $123 = (1/8)x and solve for x. The solution is x = $984.
Step-by-step explanation:
To find John's budget, we can set up an equation based on the given information. According to the question, $123 is equal to 1/8 of John's budget. Let's denote John's budget as 'x'. So, we can write the equation: $123 = (1/8)x. To solve for x, we can multiply both sides of the equation by 8 to get 123 * 8 = x. This simplifies to 984 = x. Therefore, John's budget is $984.