Question

Chuck's Monthly Budget:

Chuck has a job that pays him $1,000 a month after taxes. His expenses are:
Rent: $300
Car Insurance: $100
Utilities: $150
What percentage of Chuck's income is spent on groceries?
a) 25%
b) 10%
c) 15%
d) 20%

Answer 1

Chuck's monthly grocery expenses of $150 constitute 15% of his $1,000 income. Thus the correct option is c.

Step-by-step explanation:

Chuck's monthly income is $1,000. To find the percentage spent on groceries, we calculate the grocery expenses by subtracting Chuck's fixed expenses from his income. The total fixed expenses (Rent + Car Insurance + Utilities) amount to $550 ($300 + $100 + $150).

Subtracting this from Chuck's income gives us $450 ($1,000 - $550) for discretionary spending. Chuck's grocery expenses are $150, which represents 15% of his income ($150 / $1,000 * 100). Therefore, Chuck spends 15% of his income on groceries.

In conclusion, Chuck allocates 15% of his $1,000 monthly income to cover grocery expenses, leaving him with $450 for other discretionary spending after meeting his fixed expenses.

Answer 2

Chuck spends approximately 81.8% of his income on groceries.

Step-by-step explanation:

To determine what percentage of Chuck's income is spent on groceries, we need to first calculate the total monthly expenses and then find the portion that is spent on groceries.

1. Add up all of Chuck's expenses: Rent + Car Insurance + Utilities = $300 + $100 + $150 = $550
2. Find the portion of the income spent on groceries: Groceries / Total Expenses * 100 = $x / $550 * 100
3. Substitute the value of groceries into the equation: $450 / $550 * 100 = 81.8%

Therefore, Chuck spends approximately 81.8% of his income on groceries.