Question

Carl earns an average monthly salary of $4,200 and wants to create a budget. His renter's insurance costs $82 per month. What percentage of his budget goes towards paying renter's insurance?
8.2%
1.9%
5.1%
51.2%

Answer 1

To find out what percentage of Carl's budget goes towards paying renter's insurance, we can use the formula:

\[
\text{Percentage} = \left( \frac{\text{Renter's Insurance Cost}}{\text{Total Monthly Salary}} \right) \times 100
\]

Given:
- Renter's Insurance Cost = $82
- Total Monthly Salary = $4,200

Plugging in the numbers:

\[
\text{Percentage} = \left( \frac{82}{4200} \right) \times 100
\]

Calculating the fraction:

\[
\frac{82}{4200} \approx 0.0195238
\]

Now multiply by 100 to convert to a percentage:

\[
0.0195238 \times 100 \approx 1.95238
\]

Rounding to one decimal place, this is approximately:

\[
1.9\%
\]

So, the percentage of Carl's budget that goes towards paying renter's insurance is **1.9%**.