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?

Answer 1

<i> … Households with incomes from $50,000 to $70,000 spend 8.2% on utilities … The McKinneys' annual income is $65,000.</i>

So — the McKinneys should spend what percent of $65,000 on utilities?
Convert 8.2% to decimal number — 0.082
Now multiply …

Answer 2

Answer: $5330

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

"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 = $5330