Activity: Where Does the Money Go?
Let’s suppose your gross monthly income (that is, your income before taxes) is $3,960. Financial experts recommend that no more than $1,386 of this amount should go toward your mortgage. Based on your monthly salary, you should also spend no more than $316.80 per month on car payments. Additionally, it is advisable to place $792 of your gross monthly income into a savings account.
If you are putting these exact amounts toward these categories each month, which percentage of your gross monthly income will be spent on the following expenses?
Did you try rewording the given information, then translating it? For example, $1,386 out of $3,960 should go toward mortgage payments. This translates into the quotient . The $ symbols cancel (because they are units) and the quotient can be worked out. Remember, you will need to convert your unit-less decimal to a percentage.
(a) The percentage spent on the mortgage is .
(b) Car Payments
(b) The percentage spent on car payments is .