Bill's annual savings rate is 9%.If Bill currently saves $6,750 annually,how much more will he need to save to increase his savings rate to 11%?

Question

Quizplus · Accepted Answer

To solve this problem, we can set up a proportion:

9/100 = 6750/x

where x is the amount Bill needs to save to reach an 11% savings rate.

Cross-multiplying, we get:

9x = 675000

Dividing by 9, we get:

x = 75000/9

x ≈ 8333.33

Therefore, Bill needs to save an additional $8333.33 - $6750 = $1583.33 to increase his savings rate to 11%. The answer closest to this value is C, $1500.

Bill's Annual Savings Rate Is 9