Question

Dennis Mann estimates he needs to budget $350 a month for entertainment. How much should he actually budget if he is using a 20% contingency?

Answer 1

Resulting in a new budget of $420 per month. To include a 20% contingency in Dennis Mann's entertainment budget, he should increase the original amount of $350 by 20%, resulting in a new budget of $420 per month.

Step-by-step explanation:

Dennis Mann needs to budget $350 a month for entertainment. To calculate the amount he should budget with a 20% contingency, multiply the original budget by 1.20 (which represents 100% of the original budget plus the 20% contingency).

To find out how much he should actually budget:

1. Multiply 350 by 20% (or 0.20) to find the contingency amount: 350 x 0.20 = $70.
2. Add the contingency amount to the original budget: 350 + 70 = $420.

To calculate the amount Dennis Mann should actually budget, we need to add a contingency of 20% to the estimated budget.

First, we calculate 20% of $350, which is 0.2 x $350 = $70.

Then, we add this contingency amount to the estimated budget: $350 + $70 = $420.

Therefore, Dennis should actually budget $420 a month for entertainment to include a 20% contingency.