20
QuizMultiple Choice

N/A — Exam

Question 20 • Advanced Financial Algebra

It is suggested that entertainment expenses should be no more than 10% of a budget. Kiyan has a monthly income of $⁢2,374 and spends $⁢325 on entertainment. Does Kiyan's spending align with the suggested percentage?

Answer
A
Yes, because 7 point 3 percent is within the recommended range.
B
No, because 16 point 2 5 percent is above the recommended range.
C
Yes, because 10 percent is at the upper limit of the recommended range.
D
No, because 13 point 6 percent is above the recommended range.

Explanation

Divide the entertainment spending by the monthly income: $325 ÷ $2,374 × 100 ≈ 13.7%. That is greater than the suggested maximum of 10%, so the spending does not align with the recommendation. Choice D gives the correct conclusion, though the percentage is more accurately about 13.7% than 13.6%.

AI-written and checked against the verified answer.

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