Question

When making a budget, a recommended goal is to spend 10% on utilities. In reality, household spending depends on economic levels. Households with incomes from $15,000 to $20,000 spend over 11% on utilities. Households with incomes from $50,000 to $70,000 spend 8.2% on utilities, while households with incomes above $150,000 spend only 4.8% on utilities. The McKinneys' annual income is $65,000. How much should they budget annually for utilities? Enter the answer as a whole dollar amount, such as $200.

Answer 1

= $5530

Finds us 8.2%

Explanation:

if 8.2 was recommended for utilities then we need to find 8.2% of $65,000

We take 65000 x 0.082 = 5530

Therefore the Mckinney's annual income is 65,000 less $5530 for utilities.

We write it as $5,530 in pen and type in whole amount as $ 5530.

Answer 2

$5,330

Explanation:

Read this statement:

"The McKinneys' annual income is $65,000."

Now, read this statement:

"Households with incomes from $50,000 to $70,000 spend 8.2% on utilities"

Since $65,000 is between $50,000 and $70,000, the percent you need is 8.2%.

8.2% of $65,000 = 0.082 * $65,000 = $5,330