Your job pays you $1,600 per month. all taxes combined reduce your pay by 25%. your current expenses are $1,200 per month. you want to join a health club for $75 per month. can you afford it?

The correct answer is:

No, you cannot.

Explanation:

Since your taxes decrease your pay by 25%, this means you get to keep 100%-25% = 75% of your income.

75% = 75/100 = 0.75; this means that 75% of 1600 is

0.75(1600) = 1200

Since your expenses are $1200, and you only have $1200 left after taxes, you cannot afford any extra expenses.