Margo is trying to be financially responsible. She is going to save 22% of her paycheck every month. If her paycheck is $2500 each month, then how much money will she have saved after a year of saving?(1 point)

Question

Responses

$1,363
$1,363

$6,600
$6,600

$9,500
$9,500

$11,364
$11,364
Skip to navigation

Answer 1

To find out how much Margo will save in a year, we first need to calculate how much she saves each month.

1. Calculate her monthly savings: \[ \text{Monthly Savings} = \text{Paycheck} \times \text{Savings Rate} \] \[ \text{Monthly Savings} = 2500 \times 0.22 = 550 \]

2. Now, calculate her yearly savings by multiplying her monthly savings by the number of months in a year (12): \[ \text{Yearly Savings} = \text{Monthly Savings} \times 12 \] \[ \text{Yearly Savings} = 550 \times 12 = 6600 \]

So, after a year of saving, Margo will have saved $6,600.

The correct response is: $6,600