Question

The Smiths spend 5% of their budget on entertainment. Their total budget this year is $2,000 more than last year, and this year they plan to spend $2,150 on entertainment. What was their total budget last year?

Answer 1

Total budget last year was $41000

Explanation:

The Smiths spend 5% of the total budget on entertainment.

Amount on entertainment =
`\text{Total budget}* (5)/(100)`

This year they planned to spend the amount on entertainment = $2150

So, 2150 = Total budget ×
`(5)/(100)`

Total budget this year =
`(2150* 100)/(5)`

= $43000

Since, Total budget this year = Total budget last year + $2000

$43000 = Total budget last year + $2000

Total budget last year = $43000 - $2000

= $41000