Carrie spends $480 on rent each month. She has totaled her expenditures on food and has found that she spends $260, or 16 percent of her gross income, on food. What percent of her gross income does she spend on rent?
Let x be Carrie's gross income.
We are given that Carrie spends $260 on food, which is 16% of her gross income. Therefore, we can write this as:
0.16x = $260
Solving for x:
x = $260 / 0.16
x = $1625
Now, we know that Carrie spends $480 on rent each month. To find the percentage of her gross income spent on rent, we can divide the amount she spends on rent by her gross income and multiply by 100 (to get the percentage):
Rent percentage = ($480 / $1625) * 100
Rent percentage = 0.295 * 100
Rent percentage = 29.5%
Therefore, Carrie spends 29.5% of her gross income on rent.