Answer: Meghan spent $687.5 per year.
Step-by-step explanation:
Let x represent the amount of money that Scott spends per year for auto insurance.
Meghan spends 25% more each year for auto insurance than Scott. The value of 25% of the amount that Scott spends per year is
25/100 × x = 0.25 × x = 0.25x
Therefore, the amount that Meghan spends would be
x + 0.25x = 1.25x
If the amount that they spent together is $1237.50 per year, it means that
x + 1.25x = 1237.5
2.25x = 1237.5
x = 1237.5/2.25
x = 550
The amount that Meghan spent per year would be
1.25 × 550 = 687.5
