# P.E.I. provincial government expenditures were $58.985 billion in 2009. A breakdown of that spending is given below:...

P.E.I. provincial government expenditures were $58.985 billion in 2009. A breakdown of that spending is given below:

*Category**Spending ($billions)*

Health 22.0

Interest on Debt 9.997

Social Services 7.504

Elementary & Secondary Schools 7.315

Colleges & Universities 3.390

All other departments 8.779

Use ratios to answer the following questions.

(a) How much of the budget is spent on interest on the debt (%)?

(b) How much of the budget is spent on education (%)?

(c) How does spending on Colleges & Universities compare to spending on Elementary & Secondary Schools (ratio in lowest terms)?

(d) How does spending on Colleges & Universities compare to spending on Health (ratio in lowest terms)?

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### 2 Answers

(a) Amount spend in interest on debt = 9.997 billions

Expressing it as a fraction or ratio of total expenditure = 9.997 / 58.985

Multiplying this with 100 will give the percentage contribution.

So, budget spend in interest of debt = (9.997 / 58.985) x 100 % = **16.95 %**

(b) Amount spend in education = 7.315 + 3.390 = 10.705 billions

Similarly,

budget spend in education (%) = (10.705 / 58.985) x 100 % = **18.15%**

(c) Amount spend for colleges & universities = 3.390 billions

Amount spend for elementary & secondary schools = 7.315 billions

So the required ratio = 3.390 : 7.315

= 3390 : 7315 (multiplying both by 1000)

= **678 : 1463** (dividing by all possible common factors, here 5)

(d) Similarly,

here the required ratio = 3.390 : 22.0

= **339 : 2200**

a) Interest on debt is 9.997 billions, it is asking for a percentage of the total budget. Therefore the ratio is 9.997:58.985. To determine the percentage, conert the ratio to a fraction and multiply it by 100%:

9.997:58.985= 9.997/58.985

Percentage= 9.997/58.985 x 100%

=16.958%

Therefore, 16.958% is used on the interest of debt.

b) Same process, but first you got to remember to add the expenses of elementary&secondary schools and colleges%universities spending together as both follow under education.

7.315 billions + 3.390 billions = 10.705 billions

10.705 : 58.985 --> 10.705/58.985

= 10.705/58.985 x 100%

= 18.149%

Therefore, 18.149% is used on education.

c) Ratio in lowest terms means reducing bith terms of the ratio with a common factor.

Colleges & Universities --> 3.390 billions

Elementary & Secondary Schools --> 7.315 billions

Ratio of comparison --> 3.390 : 7.315

Reducing ratios are more difficult with decimals, hence multiply both terms by 1000 to get rid of decimals

3390 : 7315

A common factor between 3390 and 7315, therefore divide both terms by 5.

678 : 1463

Therefore the ratio is 678 : 1463 as no other common factors exist between both terms.

d) Same process as c).

Colleges & Universities --> 3.390 billions

Health --> 22.0 billions

Ratio of comparison -->3.390 : 22.0

Once again, multiply 1000 to both terms to get rid of decimals

3390 : 22000

Common factor of 10 between both terms, hence divide each term by 10.

339 : 2200 is the ration in lowest terms comparing the spending on Colleges & Universities to Health.