finding the ratio of savings to gross income\nan employee wants to save 20% of her gross income for…

finding the ratio of savings to gross income\nan employee wants to save 20% of her gross income for retirement. her company contributes 5.8% of each employees gross income to a retirement - savings account. the employee is also saving $100 per paycheck. complete the equation that determines what the employee has to earn, $x$, for the savings rate to be 20%.\n$\\square=\\frac{100 + \\square x}{x}$

finding the ratio of savings to gross income\nan employee wants to save 20% of her gross income for retirement. her company contributes 5.8% of each employees gross income to a retirement - savings account. the employee is also saving $100 per paycheck. complete the equation that determines what the employee has to earn, $x$, for the savings rate to be 20%.\n$\\square=\\frac{100 + \\square x}{x}$

Answer

Explanation:

Step1: Identify total savings

The total savings is the sum of the $100 per - paycheck and the company - contributed percentage of the income. The company contributes 5.8% or 0.058 of the income $x$. So the total savings is $100 + 0.058x$.

Step2: Set up the ratio equation

The employee wants the savings rate to be 20% or 0.2. The ratio of total savings to the gross income $x$ should be 0.2. So the equation is $0.2=\frac{100 + 0.058x}{x}$.

Answer:

$0.2=\frac{100 + 0.058x}{x}$