Question

If you make an annual salary of $18,920, what is the maximum monthly rent you can afford?

$529.76

$441.47

$882.94

$536.22

Answer 1

Answer with explanation:

We will use ,
`(28)/(36)` rule here, which states that , 28 % of your monthly income should be used for housing finances and 36 % of your total gross income should be used for debt purposes.

Total Annual Salary = $ 18,920

Monthly salary
`=(18920)/(12)`

→→28% of 18,920

`=(28)/(100)* (18920)/(12)\\\\=(529760)/(100* 12)=441.4666\\\\=441.47`

Option B: $ 441.47

Answer 2

If you make an annual salary of $18,920, Find the maximum monthly rent you can afford:
=> 18 920 dollars / 12 months = 1576.67 dollars is your monthly payment.
Base on the given choices, you can afford all prices but practicality wise, 441.47 dollars is the most recommended rentals.