Question

Solve each problem.



Laurel has a monthly budget that breaks down as follows:
25
%
25% for housing,
20
%
20% for food,
15
%
15% for utilities,
20
%
20% for savings,
10
%
10% for entertainment, and
10
%
10% for personal items. Laurel has a net income of
$
5500
$5500 each month.



Calculate the amount of money that Laurel has for savings each month.



Laurel has $
for savings.

(b)
Last month Laurel spent
$
500
$500 on entertainment. What percent of her monthly income did she spend on entertainment?



Laurel spent approximately
% of her income on entertainment.

(c)
Laurel is moving and will have a new mortgage of
$
2500
$2500. What st Laurel increase her net income to in order to keep her housing cost at
25
%
25%?



Laurel’s net income must be $
.

Answer 1

To solve each of these problems related to Laurel's budget, let's break them down step-by-step.

### (a) Calculate the amount of money that Laurel has for savings each month.

Laurel allocates 20% of her net income for savings.

To find the amount for savings:
\[
\text{Savings} = \text{Net Income} \times \text{Savings Percentage}
\]
\[
\text{Savings} = 5500 \times 0.20 = 1100
\]

Laurel has **$1100** for savings each month.

### (b) Calculate the percent of her monthly income that Laurel spent on entertainment.

Laurel spent $500 on entertainment. To find what percent of her monthly income this represents, use the formula:
\[
\text{Percent Spent} = \left( \frac{\text{Amount Spent}}{\text{Net Income}} \right) \times 100
\]
\[
\text{Percent Spent} = \left( \frac{500}{5500} \right) \times 100 = \frac{500 \times 100}{5500} \approx 9.09
\]

Laurel spent approximately **9.09%** of her income on entertainment.

### (c) Calculate what Laurel's net income must be to keep her housing cost at 25% with a new mortgage of $2500.

The housing cost represents 25% of her net income. Therefore, we can set up the equation:
\[
\text{Mortgage} = 0.25 \times \text{Net Income}
\]
\[
2500 = 0.25 \times \text{Net Income}
\]

To find the required net income, divide both sides by 0.25:
\[
\text{Net Income} = \frac{2500}{0.25} = 10000
\]

Laurel’s net income must be **$10000**.