Question

The Smiths spend 6% of their budget on entertainment. Their total budget this year is $2,000 more than last year, and this year they plan to spend $2,760 on entertainment. What was their total budget last year? Their total budget last year was?

Answer 1

Answer: Their total budget last year was $44,000.

Explanation:

Given: Smiths spend 6% of their budget on entertainment.

Total budget this year = $ 2000 more than last year.

Let x = Budget for this year.

Money on entertainment = 0.06x = 2760

`\Rightarrow\ x=(2760)/(0.06)= \$46,000`

⇒ Budget for this year = $ 46,000

Budget for last year = $ 46,000 - $2,000 = $44,000

Hence, their total budget last year was $44,000.