Question

Help!

Assume that your annual gross income is $45,000. After deductions, assume that your take-home pay is $36,000. What is your monthly income and what is the maximum you should spend on rent each month?

Answer 1

1. The monthly income is $3,750.00
2. Maximum amount on rent $1,050

Step-by-step explanation:

Monthly income will be the annual income divided by 12 months

= $45,000/ 12

=$3,750.00

The monthly income is $3,750.00

The maximum amount of rent should be guided by the 28/36 rule. Housing should not exceed 28 percent, while total household expenditure should not exceed 36 percent.

The rent should be a maximum of

=28/100 x $3,750.00

=0.28 x $3,750.00

=$1050

Maximum amount on rent $1,050