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Part 1
Jan has 2.5​% of her earnings deposited into her retirement plan. If ​$150 per month is deposited in the​ plan, find her monthly and yearly earnings.

1 answer

To find Jan's monthly and yearly earnings based on the information you've provided, we can use the following steps:

  1. Determine the monthly earnings from the information given: Jan has 2.5% of her earnings deposited into her retirement plan, and $150 is deposited each month.

    Let \( E \) represent her monthly earnings.

    According to the information: \[ 0.025 \times E = 150 \]

  2. Solve for \( E \):

    To find \( E \): \[ E = \frac{150}{0.025} \]

    Now calculate: \[ E = 150 \div 0.025 = 6000 \]

    So, Jan's monthly earnings are $6,000.

  3. Calculate the yearly earnings:

    To find yearly earnings, multiply the monthly earnings by 12: \[ \text{Yearly earnings} = 6000 \times 12 = 72000 \]

Thus, Jan's monthly earnings are $6,000 and her yearly earnings are $72,000.