Question

Miranda earns $72,000 annually. She contributes $300 a month to a savings bond. What percent of her salary does she contribute to her savings bond?

0.05%
1%
1.5%
5%

Answer 1

Answer: 5%

Explanation:

First notice that she contributes $300 a month and annually means yearly, so find the amount that she contributes yearly by multiplying 300 by 12 because there are 12 months in a year.

300 * 12 = 3600

Now to find the percentage, divide the amount she contributes in year by her annual salary.

3600/ 72000 = 0.05

Convert 0.05 into a percent by multiplying 0.05 by one hundred.

0.05 * 100 = 5%