Answer:
$2.50
Step-by-step explanation:
Let the original monthly expenses be 'x'.
Given:
Reduced monthly expenses = $2.125
Reduction in monthly expenses = 15%
Therefore, remaining percentage of monthly expenses = 100 - 15 = 85%
Now, as per question:
[tex]85\%\ of\ x=2.125\\\frac{85}{100}\times x=2.125\\0.85x=2.125\\x=\frac{2.125}{0.85}=\$2.50[/tex]
Therefore, the original monthly expenses of Mr. Wood was $2.50.
Also, we can find his monthly income using the value of 'x'.
As per question, his monthly expenses is 80% of his income.
So, 80% of income = 2.5
Income = [tex]\frac{2.5}{0.80}=\$3.125[/tex]
So, his monthly income is $ 3.125
