Question

Alice earns an average monthly salary of $3,800 and wants to create a budget. Her rent costs $800 per month. What percentage of her budget goes towards paying rent?

Answer 1

To find out what percentage of Alice's budget goes towards paying rent, you can use the following formula:

\[
\text{Percentage of budget for rent} = \left( \frac{\text{Rent}}{\text{Total Income}} \right) \times 100
\]

In this case, Alice's rent is $800, and her average monthly salary (total income) is $3,800.

Now, substitute the values into the formula:

\[
\text{Percentage of budget for rent} = \left( \frac{800}{3800} \right) \times 100
\]

Calculating the fraction:

\[
\frac{800}{3800} = 0.2105263158
\]

Now, convert that to a percentage:

\[
0.2105263158 \times 100 \approx 21.05
\]

So, approximately **21.05%** of Alice's budget goes towards paying rent.