Question

Gretchen's gross annual salary is $57,852 what is the maximum amount of rent she can afford to pay

Answer 1

Answer: Varies depending on the percent that you use.

To find the amount that you should spend on rent, you simply multiply your total annual salary by the recommend percent. Use the one that you were given.

A common percent is 30%.

So you would do the following problem if you were using 30%.
0.30 x 57852 = $17,355.6.

Answer 2

Rent should be no more than 28% of a person's gross monthly income. Divide the annual salary by 12 and multiply the quotient by 0.28.

Answer is $1350