A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?
A. 0.00013
B. 0.0013
C. 0.013
D. 0.13
E. 1.3
How will i start solving it? I am confused about the formulas to use. Need experts advice.
OAE
A certain financial institution
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Since the answer choices are so spread apart, we can use some approximations.lheiannie07 wrote:A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?
A. 0.00013
B. 0.0013
C. 0.013
D. 0.13
E. 1.3
Let's round $2,377,366.30 UP to $2,400,000
Now let's test out some percents.
10% of $2,400,000 is $240,000
1% of $2,400,000 is $24,000
Since $31,724.54 is BETWEEN $24,000 and $240,000 , we can conclude that the desired percent must be BETWEEN 1% and 10%
Only answer choice E is between 1% and 10%
Answer: E
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The percentage held in cash is:lheiannie07 wrote:A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?
A. 0.00013
B. 0.0013
C. 0.013
D. 0.13
E. 1.3
OAE
31,724.54/2,377,366.30 x 100
We can round 31,724.54 to 32,000 and round 2,377,366.30 to 2,400,000, and we have:
32,000/2,400,000 x 100
32/2,400 x 100
32/24
4/3
1.333...
The closest answer choice is 1.3.
Answer: E
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