During the last year...

Question

During the last year one family member earned $24,000 in wages. Another family member earns $24,000 in wages. The total family income was $56,000. If the only other source of income was return on investments, what fractional part of the total family income came from return investments?

A) 1/4

B) 3/4

C) 1/7

D) 6/7

Answer 1

The amount of income from investments is $56,000 - ($24,000 + $24,000) = $8,000. That amount is one-seventh of the total income of $56,000. Let's check to be sure:

8 / 8 = 1

56 / 8 = 7

We are correct.