Splitting the bill.

Question

There are three people moving into a house that they are financing for $1500 a month. All three people want to split the bill and all pay a portion of it. Let's say person 1 makes $40,000 a year, person 2 makes $25,000 a year, and person 3 makes $32,000 a year. How would you split the bill so that it was proportionate to how much each person makes? (For example, person 1 would pay more than person 2 because person 1 makes more.)

Answer 1

STEP 1: combine the incomes

 

   40k + 25k + 32k = 97 k  <--- total combined income is $97,000

 

 

STEP 2: calculates the percentages 

 

   40k/97k = 41.24%

 

  25k/97k = 25.77%

 

  32/97 =  32.99%

 

Notice the total is 100%

 

Step 3: splits the expenses proportionally

 

So the first person pays 41.24% of the expenses: 41.25% x 1500 = 618.75

 

2nd person pays 25.77% of the expenses: 25.77% x 1500 = 386.55

 

3rd person pays 32.99% of the expenses: 32.99% x 1500 = 494.85

 

There will be round off error due to splitting decimal points, but there ya go.