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In a society with 240,000 households, 10,000 households earn $4 each, 4,000 households earn $2 each, 10,000 households earn $10 each, and the rest earn $1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%

Question

In a society with 240,000 households, 10,000 households earn 4each, 4,000 householdsearn4 each, 4,000 households earn 2 each, 10,000 households earn 10each,andtherestearn10 each, and the rest earn 1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%

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Solution

To find the income share of the third quintile, we first need to calculate the total income of the society and the income of each quintile.

  1. Calculate the total income of the society:
    • 10,000 households earn 4each,sotheyearnatotalof10,0004 each, so they earn a total of 10,000 * 4 = $40,000
    • 4,000 households earn 2each,sotheyearnatotalof4,0002 each, so they earn a total of 4,000 * 2 = $8,000
    • 10,000 households earn 10each,sotheyearnatotalof10,00010 each, so they earn a total of 10,000 * 10 = $100,000
    • The rest of the households (240,000 - 10,000 - 4,000 - 10,000 = 216,000 households) earn 1each,sotheyearnatotalof216,0001 each, so they earn a total of 216,000 * 1 = $216,000
    • The total income of the society is

This problem has been solved

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