1. ## Percent Allocation

Hi,
I am not sure my thought process is correct in this computation. I need to allocate a portion of the tax $500 between these amounts$1500 and $2000 relative to their percentage of the total$4000.

1) $1500+$2000+500(tax) = $4000 2) 1500/4000 = .375 2000/4000 = .5 500/4000 = .125 3) 500*.375 = 187.50 500*.5 = 250.00 500*.125 = 62.50 4) 1500+187.50 = 1687.50 2000+250.00 = 2250.00 3937.50 What about the remaining 62.50? How does that get allocated between$1500 and $2000 or does that get allocated at all? That's the part that is confusing me. Can someone please help explain what I'm doing wrong? Thanks! 2. tax$500 between these amounts $1500 and$2000 relative to their percentage of the total $4000. What? There should not be a remaining 62.50. Something went wrong. Please remember that results should make sense. When your solution fails to make sense, rework your arithmetic, don't question the mathematics. (2000 / 4000) * 500 = (1/2) * 500 = 250 (500 / 4000 ) * 500 = (1/8) * 500 = 62.50 Since we like to avoid rounding errors, 500 - 250 - 62.50 = 187.50 Now check (1500 / 4000 ) * 500 = (3/8) * 500 = 187.50 Now you are done. Of course, in this case, figuring out what the problem is and what it wants turns out to be the hard part. 3. Originally Posted by CherylSedor Hi, I am not sure my thought process is correct in this computation. I need to allocate a portion of the tax$500 between these amounts $1500 and$2000 relative to their percentage of the total $4000. 1)$1500+$2000+500(tax) =$4000
2) 1500/4000 = .375
2000/4000 = .5
500/4000 = .125
You should not be including the tax in the total: $1500+$2000= 3500.
1500/3500= 0.429, 2000/3500= 0.571 (and, of course, .429+ .571= 1.000)
.571*500= $285.50 500*.429=$214.50 and, again, 285.50+ 214.50= 500.
$285.50 of the tax is allocated to the$2000 and $214.50 to the$1500.

3) 500*.375 = 187.50
500*.5 = 250.00
500*.125 = 62.50
You are allocating $62.50 of the tax to the tax. You don't have to pay tax on tax! 4) 1500+187.50 = 1687.50 2000+250.00 = 2250.00 3937.50 What about the remaining 62.50? How does that get allocated between$1500 and \$2000 or does that get allocated at all? That's the part that is confusing me. Can someone please help explain what I'm doing wrong? Thanks!