A family spends 20% of its monthly income on food, 23% on rent, and 42% on other expenses and saves the balance. If the family saves $360 per month, is their monthly income $2,400?
Yes. You're right. The family's monthly income is $2400.
To find out if the family's monthly income is $2,400, we need to first calculate the total percentage of income spent on food, rent, and other expenses.
Let's start by calculating the total percentage of income spent:
Food: 20%
Rent: 23%
Other expenses: 42%
To find the percentage of money saved, subtract the sum of these percentages from 100%:
100% - (20% + 23% + 42%) = 100% - 85% = 15%
We know that the family saves 15% of its monthly income, which amounts to $360. Now, we can calculate the total monthly income.
Let X be the total monthly income.
15% of X = $360
To find X, we need to divide the savings by the saving percentage (15%):
X = $360 / 0.15 = $2400
Therefore, the family's monthly income is indeed $2,400.