Question

A group of 10 people have the following annual incomes: $24,000, $18,000, $50,000, $100,000, $12,000, $36,000, $80,000, $10,000, $24,000, $16,000. Calculate the share of total income that each quintile receives from this income distribution. What percent of the total income is represented by the highest quintile

Answer 1

Answer:

48.65%

Explanation:

Given Income are written in increasing order

First Quintile        10,000  12,000

Second Quintile  16,000   18,000

Third Quintile      24,000  24,000

Fourth Quintile    36,000  50,000

Fifth Quintile        80,000  100,000

                                                           Total Income   % share

First Quintile        10,000  12,000         22,000           5.95

Second Quintile  16,000   18,000         34,000           9.19

Third Quintile      24,000  24,000         48,000          12.97

Fourth Quintile    36,000  50,000        86,000          23.24

Fifth Quintile        80,000  100,000      180,000         48.65

Total income in the economy              370,000         100%

The percentage of the total income of the highest quintile is 48.65%