Question

Andrea Porter spends $11%$ of her $\$54,000$ yearly salary on car payments. How much must she pay for her car each month?

Answer 1

Hint: To get the installment for a car each month, we will calculate the total money spent by Andrea Porter in a year that is equal to $11%$ of the total yearly salary of Andrea Porter. Since, we got the total money spent on car payments in a year, we will get a monthly installment that is paid monthly for car by dividing $12$ (Total number of months in a year) with total spend money for car payment in a year.

Complete step by step solution:
Since, we have some values from the question that are:
Andrea Porter’s Salary (Yearly) $=\$54,000$
And, Total paid money for her car in a year (In percentage) $=11%$
Here, we have the total spend money for car payment in a year in percentage. Now, we can convert it this percent value in original value or in numbers by multiplying percentage to total money as:
Total paid money for her car in a year (In numbers) $=\$54,000\times11%$
As we know that we can write the percentage values in fraction as:
Total paid money for her car in a year (In numbers) $=\$54,000\times\dfrac{11}{100}$
Here, we will divide the total income by $100$ and we get:
Total paid money for her car in a year (In numbers) $=\$540\times11$
Now, we will do multiplication in the above equation as:
Total paid money for her car in a year (In numbers) $=\$5940$
Since, $\$5940$ is the total amount paid for her car by Andrea Porter in a year. As we know that there are $12$ months in a year. So, for getting the monthly cay payments, we will have to divide by $12$ in the above equation as:
Total paid money for her car in a month (In numbers) $=\dfrac{\$5940}{12}$
After dividing by $12$ , we will have the monthly installment as:
Total paid money for her car in a month (In numbers) $=\$495$
Hence, the total paid money by Andrea Porter in a month is $\$495$ .

Note:
Here, we will verify if obtained monthly car payment is correct or not by following way as:
We have the monthly paid money for a car $\$495$ . Since, this is the monthly paid money; we will get the yearly paid money by multiplying $12$ because there are 12 months in a year. So, we will have yearly paid money for her car as:
Total paid money for her car in a year $=\$495\times12$
After doing multiplication, we will have the yearly paid money as:
Total paid money for her car in a year $=\$5940$
Since, from the question we already have total yearly income of Andrea Porter as
Andrea Porter’s Salary (Yearly) $=\$54,000$
Here, we will calculate the total spend money for car in percentage as:
Total spend money for car in percentage \[=\dfrac{\text{Total spend money for car in a year}}{\text{Total salary in a year}}\times 100\]
Now, we will put the related values, So we will have the above equation as:
Total spend money for car in percentage \[=\dfrac{\$5940}{\$54,000}\times100\]
Here, we will get the multiplying value as:
Total spend money for car in percentage \[=\dfrac{\$5,94,000}{\$54,000}\]
After applying division, we will have the spend money in percentage as:
Total spend money for car in percentage \[=11%\]
Since, we got the given percentage. Hence, the solution is correct.