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What is the total annual income if $28,600 is allocated for auto and insurance combined, with 10% dedicated to insurance and 12% to auto?

A) $19,772
B) $23,284
C) $28,600
D) $32,116

User Icebreaker
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1 Answer

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Final answer:

To calculate the total annual income, the combined percentage of 22% for both auto and insurance expenses was used to find that 22% of the total income equals $28,600. The correct answer is C) $28,600.

Step-by-step explanation:

To calculate the total annual income based on a specific allocation for auto and insurance expenses, we need to determine the percentage of these expenses in relation to the total income.

The question states that $28,600 is allocated for both auto and insurance combined, with 10% for insurance and 12% for auto. Hence, the combined percentage dedicated to auto and insurance is 10% + 12% = 22%. To find the total annual income, we can set up a proportion where 22% of the total income equals $28,600:

0.22 × Total Income = $28,600

Next, we solve for the total income:

Total Income = $28,600 / 0.22

Total Income = $130,000

This amount represents the entire income required to allocate $28,600 to auto and insurance expenses based on their respective percentages.

User Feodor Fitsner
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