1. **State the problem:** Patrick has savings of 480 dollars. Mike's savings are one and one-eighth times Patrick's savings. Mike spends \frac{15}{100} (15%) of his savings to buy a storybook. We need to find the cost of the storybook. 2. **Express Mike's savings:** One and one-eighth times Patrick's savings means: $$1 + \frac{1}{8} = \frac{9}{8}$$ So, Mike's savings = $ \frac{9}{8} \times 480 $. 3. **Calculate Mike's savings:** $$\frac{9}{8} \times 480 = 9 \times 60 = 540$$ Mike has 540 dollars. 4. **Calculate the cost of the storybook:** Mike spends 15% of his savings: $$15\% = \frac{15}{100} = 0.15$$ Cost of storybook = $0.15 \times 540 = 81$. 5. **Final answer:** The storybook cost 81 dollars.