In 2014, America\'s income gap was wider than ever. The circle graph shows the a

Question

In 2014, America's income gap was wider than ever. The circle graph shows the average household income from the richest 5% of households to the poorest 30% of households. Use this information to solve Exercises 57-58 If the richest 5% includes 5.85 million households, how many households, in millions, are there in the United States? The average income in 2014 for the richest 5% was 180% of what this group's average income had been in 1975. What was the average income in 1975, to the nearest dollar, for the richest 5%? If the poorest 30% includes 35.1 million households, how many households, in millions, are there in the United States? The average income in 2014 for the poorest 30% was 107% of what this group's average income had been in 1975. What was the average income in 1975, to the nearest dollar, for the poorest 30%?

Explanation / Answer

57-

A)

Let total households be x millions.

5% of x=5.85

so, 5/100*x=5.85

so, x=585/5=117 million.

B)

Let average income in 1975 is y.

Average income in 2014 for richest 5%=180% of average income in 1975.

From graph average income for richest 5% in 2014 is $332,960

So from statement,

332960=(180/100)*y

so y=332960*100/180=$184,977.7778

In nearest dollars=$184,978

............

PLEASE UPVOTE TO SUPPORT.

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