A new law requires that 12% of an individual's income be invested in the stock market. Your accounts show that you need to put $420 in the stock market this year. How much did you earn this year.
My Guess is 3,500%
But Its a guess i would like to know how to solve the problem so don't give the answers XD unless we work together to find it
12% x = $420 ... .12 x = 420 ... x = 420 / .12
you probably earned $ , not %
thx so much R_scott :)
To solve this problem, we need to set up an equation based on the given information. Let's break down the problem step by step.
First, we know that 12% of an individual's income needs to be invested in the stock market. Let's say the individual's income is represented by "X".
So, the amount of money to be invested in the stock market can be calculated as 12% of X, which can be written as:
(12/100) * X
Next, we are given that the amount to be invested in the stock market is $420. So, we can set up the equation:
(12/100) * X = $420
To find X, we need to isolate it on one side of the equation. Let's solve for X:
Divide both sides of the equation by (12/100):
X = $420 / (12/100)
To divide by a fraction, we can multiply by its reciprocal:
X = $420 * (100/12)
Now, let's calculate this:
X = $420 * 100/12
X = $3,500
So, if you need to invest $420 in the stock market and it corresponds to 12% of your income, then your total annual income would be $3,500.
Hope this helps!