Ben spends 20% of his after-tax income on his car. If his car payment is $400 and he pays 1/3 of his gross income in taxes, how much does he make per month before taxes?
Please answer and provide answer explanation.
3000
First divide that amount of the car payment by 20% to find Ben's after - tax salary: $400 /.

2 = $2000.

Then find the proportion of his salary Ben keeps after taxes by subtracting the tax rate from 1: 1 - 1 / 3 = 2 / 3.

Then divide Ben's after - tax salary by the proportion of his salary he keeps to find his before - tax salary: $2000 / 2 / 3 = $3000.

.

Therefore, the answer is 3000