Question

Given that a household spends on average 25 percent of their annual income on groceries. If they spend $2500.00 ongroceries in a year. What is their annual income?

Answer 1

ANSWER

$\ 10,000.00$

EXPLANATION

The family spends 25% of its annual income on groceries and they spend $2500.00 on groceries.

Let the annual income be A.

This means that:

$25\%\cdot A=\ 2500$

Now, solve for A:

$\begin{gathered} \frac{25}{100}\cdot A=2500 \\ A=2500\cdot\frac{100}{25} \\ A=\ 10,000.00 \end{gathered}$

That is the annual income of the family.