Question

Lorinda has started to think about saving for retirement. She reads a recommendation that says she should save at least 3/10 of her income because she is over 40 years old. Lorinda makes $44,000 a year. How much should she save in one year according to this recommendation

Answer 1

Lorinda should save $13,200 in one year according to the recommendation.

Step-by-step explanation:

To find out how much Lorinda should save in one year according to the recommendation, we need to multiply her income by the savings rate. The savings rate is given as 3/10, which can be written as a decimal as 0.3. So, Lorinda should save 0.3 times her annual income.

Her annual income is $44,000. Multiplying $44,000 by 0.3 gives us:

$44,000 imes 0.3 = $13,200

Therefore, Lorinda should save $13,200 in one year according to the recommendation.