For every $10,000 a company earns, it gives $500 to charity. Which of these statements is correct based on this information?

Question

A.
The company gives to charity at a rate of $0.05 for every $1 earned.
B.
The company gives to charity at a rate of $0.50 for every $1 earned.
C.
The company gives to charity at a rate of $2 for every $1 earned.
D.
The company gives to charity at a rate of $20 for every $1 earned.

Answer 1

To determine the correct statement, we need to calculate the rate at which the company gives to charity per dollar earned.

The company gives $500 to charity for every $10,000 earned.

To find the rate per dollar, we need to divide the amount given to charity by the amount earned:

\[ \text{Rate} = \frac{\text{Amount given to charity}}{\text{Amount earned}} = \frac{500}{10000} \]

Calculating this gives:

\[ \text{Rate} = \frac{500}{10000} = 0.05 \]

This means that the company gives $0.05 for every dollar earned.

Thus, the correct statement is:

A. The company gives to charity at a rate of $0.05 for every $1 earned.