Question

A family has annual loan payments equal to 30%  of their annual income. During the year, their loan payments total $15,680. What is the family's annual income? (Round your answer to the nearest cent.)

Answer 1

First, set up a ratio:
`(30)/(100) = (15,680)/(x)`
The first fraction is the percentage (30% and
`(30)/(100)` are the same thing) and the second is the loan payment (which is equal to the 30 in the first fraction) over their annual income (
`x`).
First you divide $15,680 by 30, then multiply that quantity by 100. The value calculated then replaces
`x` in your second fraction:
`(30)/(100) = (15,680)/(52,266.67)`