Question

Your parents have been advised to save 5% of their income for your college education, which would include money for housing, tuition, books, and fees. How much would your parents have saved in one year, following the recommended 5%, if they had an average household income of $48,948? Show your work.
I NEED HELP UNDERSTANDING THIS PROBLEM!!!

Answer 1

Answer:

$2447.40.

Step-by-step explanation:

We have been given that your parents have been advised to save 5% of their income for your college education, which would include money for housing, tuition, books, and fees. They had an average household income of $48,948.

Let us find 5% of average household income to find the savings of your parents in one year.

$\text{Savings of your parents in one year}=\ 48,948\times \frac{5}{100}$

$\text{Savings of your parents in one year}=\ 48,948\times0.05$

$\text{Savings of your parents in one year}=\ 2447.40$

Therefore, your parents would have saved $2447.40 is one year.

Answer 2

Just multiply the average household income by 5% or .05 and that’s how much your parents would have saved