Karl has an annual salary of $22,000 and pays $250 each month for car insurance.
a) Find Karl’s annual cost for car insurance
b) Karl’s payments on car insurance is what percentage of his annual income?State your answer to the nearest whole number.
a) 12 * 250 =
b) 12 * 250 * 100 / 22,000 =
To find Karl's annual cost for car insurance, we need to multiply the monthly payment by 12, since there are 12 months in a year.
a) Karl's annual cost for car insurance = $250/month * 12 months = $3000
To find the percentage of Karl's annual income that his car insurance payments represent, we need to divide his car insurance payments by his annual salary and then multiply by 100 to get a percentage.
b) Percentage of Karl's annual income spent on car insurance = ($3000 / $22,000) * 100 = 13.63%
Rounded to the nearest whole number, the answer is 14%.