A good strategy for word problems is to simply read and write down what it says. Overthinking word problems often leads to errors. This problem says
annual loan payments equal to 26% of their annual income.
L = (0.26) I
Choose variables that help you remember what they refer to in story. I chose L for loan and I for income. Remember the percent symbol means “out of 100”. 26% = 26/100 = 0.26) “Of” in a math word problem often means times. Learn the language of translating word problems into math equations.
Let’s read on:
loan payments total $15,680
So now we know L = 15,680. Substitute that in:
15680 = (0.26)I
solve for I by dividing both sides by 0.26. Put in calculator and solve.
Don’t overcomplicate things. Many times just writing down exactly what the story tells you leads you simply to the answer.
Good luck!
