Cathy budgets 23% of her income for housing and 21% of her income
for food. If she earns $18,000 per year, how much must she budget
monthly for housing and food?
a. $792
b. $660
c. $7,920
d. $61.30
First, we need to find out how much Cathy's income is monthly:
$18,000 / 12 months = $1,500 per month
Next, we need to calculate how much she must budget for housing and food.
For housing:
$1,500 x 0.23 = $345
For food:
$1,500 x 0.21 = $315
Adding the two amounts together:
$345 + $315 = $660
Therefore, the answer is b. $660.