If the family decides to reduce its clothing budget by $200 a month, how much will the new clothing budget be? Round to the nearest dollar. $161

$853

$970

$1,170

The question is incomplete, below is a possible match to the complete question:

The Chambers family has a net monthly income of $6,500. A circle graph titled Chambers Family Budget. Housing is 25 percent, Food is 20 percent, Savings is 7 percent, Transportation is 12 percent, medical is 10 percent, clothing is 18 percent, emergency fund is 8 percent. If the family decides to reduce its clothing budget by $200 a month, how much will the new clothing budget be? Round to the nearest dollar.

$161

$853

$970

$1,170

The correct answer is $970

Step-by-step explanation:

To calculate the old budget for clothing, let us first convert from percentage to monetary value, and this is done as follows:

Clothing = 18% of monthly income

where: monthly income = $6,500

∴ clothing = 18/100 × 6,500

= 0.18 × 6,500 = $1,170

old budget = $1,170

If the family decides to reduce its clothing budget by $200 a month, the new budget will be:

New budget = old budget - $200

= 1,170 - 200 = $970.

Therefore, the new budget will be $970

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step-by-step explanation:

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