Question

The Dunkin family budgets 6 1/2% of their annual net income of $39,000 for clothes. How much annually do they budget for clothes?

Answer 1

They budget $2,535 annually.

You need to find 6.5% of 39,000 by converting 6.5% to a decimal by moving 2 places to the left, hence .065. Afterwards since you have an annual budget you multiply .065 by 39,000.