We are told that Ernesto budgeted 4,700 for food. Since the food will rise 11%, it makes sense that Ernesto should also budget 11% more of what we budgeted before.
So, we will calculate the 11% of 4,700 and add it to the initial 4,700.
Recall that the 11% of 4,700 can be calculated as follows:
[tex]4,700\cdot\frac{11}{100}=517[/tex]So, we should add this amount to the initial budget. That is
[tex]4,700+517=5,217[/tex]So Ernesto should budget $5,217 this year.
