Question

Ron is saving money for college. Each month he deposits 10% of his net income plus

an additional $50 into a savings account. His net income, after taxes have been taken

out, is 80% of his gross income. Find the amount that Ron saves a month when his

gross income is $2400.

Answer 1

$242

Explanation:

His Gross income a month is $2400.

Now, we are told that his net income, after taxes have been taken out, is 80% of his gross income.

Thus;

Net income a month = 80% × 2400 = $1920

Now, Each month he deposits 10% of his net income plus an additional $50 into a savings account.

This means amount saved each month is = (10% × 1920) + 50 = 192 + 50 = $242