The Smiths spend 6% of their budget on entertainment. Their total budget this year is $3,000 more than last year, and this year they plan to spend $2,580 on entertainment. What was their total budget last year?

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.

1.5%

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