Final answer:
To calculate the percentage of Maria Kent's income that goes towards fixed expenses, we add up the fixed expenses of $1100 (rent), $50 (life insurance), and $240 (auto loan), to get $1390. Dividing $1390 by her projected income of $4500, and multiplying by 100, gives us approximately 31%. Therefore, the correct answer is option (a) 31 percent.
Step-by-step explanation:
When preparing her monthly budget, Maria Kent has projected expenses that include $1100 for rent, $50 for life insurance, and $240 for her auto loan.
To calculate the percentage of her income that goes towards these fixed expenses, we add up the expenses and then divide by her projected income, and finally multiply by 100 to get a percentage.
First, calculate the total fixed expenses:
- Rent: $1100
- Life insurance: $50
- Auto loan: $240
Total fixed expenses = $1100 + $50 + $240 = $1390
Next, calculate the percentage of her income that goes towards fixed expenses:
Percentage of income for fixed expenses = (Total fixed expenses / Projected income) x 100 = ($1390 / $4500) x 100 = 30.89%
When rounded to the nearest whole number, this percentage is 31%, which means option (a) is the correct answer.