Final answer:
To calculate the percentage of Ryan's income that he spends on gas, we use the formula: (amount spent on gas / total income) × 100%. So, Ryan spends $125 on gas from his monthly income of $2500. Using the formula we get: (125 / 2500) × 100% = 5%. Therefore, the correct answer is B) 5%.
Step-by-step explanation:
To determine the percentage of Ryan's income spent on gas, the formula (\( \text{amount spent on gas} / \text{total income} \) × 100%) is applied. In this case, Ryan allocates $125 of his $2500 monthly income to gas expenses. By substituting these values into the formula, the calculation becomes (\(125 / 2500) × 100% = 5%\). This signifies that 5% of Ryan's monthly income is dedicated to covering gas costs. The percentage provides a relative measure, making it easier to comprehend the proportion of income devoted to a specific expense. In this instance, the result, 5%, quantifies the extent of Ryan's budget allocated to gas, offering valuable insights into his spending patterns and financial management.