Answer: Their total budget last year was $40,000.
Step-by-step explanation:
Given : The Smiths spend 6% of their budget on entertainment.
i.e. , The money they spend on entertainment = 0.06 x ( Total budget)
{ 6% is converted to 0.06 , when we divide it by 100 to remove percentage)
Since , this year they plan to spend $2,580 on entertainment.
i.e. 0.06 x ( Total budget ) = $2,580
On dividing both sides by 0.06 , we get
( Total budget ) = $2,580 ÷ 0.06
= $43,000
Thus , their total budget for this year = $43,000
Also, Their total budget this year is $3,000 more than last year.
Therefore , their last year total budget = ( Total budget this year ) - $3000
= $43,000 - $3000
= $40,000
Hence, their total budget last year was $40,000.
