Question

carls monthly take - home pay is $2000, and his monthly rent is $500. if both his monthly take - home pay and his rent increase by $100, what percentage of carls take - home pay will be used to pay rent?
a. 28.6%
b. 25.0%
c. 30.0%
d. 23.8%

Explanation:

Step1: Find new take - home pay

Carl's original take - home pay is $2000, and it increases by $100. So the new take - home pay is $2000 + $100=$2100.

Step2: Find new rent

Carl's original rent is $500, and it increases by $100. So the new rent is $500 + $100 = $600.

Step3: Calculate the percentage

To find the percentage of take - home pay used for rent, we use the formula $\text{Percentage}=\frac{\text{New Rent}}{\text{New Take - home Pay}}\times100\%$. Substituting the values, we get $\frac{600}{2100}\times100\%=\frac{60000}{2100}\% \approx 28.6\%$.

Answer:

A. 28.6%