Myrna budgets 22% of her annual income for housing. If she budgets
$400 per month for housing, what is her annual income?
a. $43,636
b. $4,800
c. $1,818
d. $21,818
We can start by setting up a proportion:
22/100 = 400/x
where x is her annual income.
To solve for x, we can cross-multiply:
22x = 40000
Then we can divide both sides by 22:
x = 40000/22
x ≈ 1818.18
So her annual income is approximately $1818.18, which means the answer is (c).