Susan makes $20,504 annually. What is the maximum monthly rent that she can afford to pay?
A-$5,741
B-$478
C-$564
D-$427
My answer is $478
What percentage of her income is supposed to be for rent?
I really don't know because the question doesn't say that
What does your text recommend? I've heard various figures from 1/4 to 1/3 of a person's take-home pay should be the maximum for housing.
To figure out the maximum monthly rent that Susan can afford to pay, we need to divide her annual income by 12 (the number of months in a year).
Step 1: Divide the annual income by 12:
$20,504 ÷ 12 = $1,708.67 (rounded to two decimal places)
Step 2: Round the monthly rent down to the nearest whole number:
Since we're dealing with money, it's best to round down to be on the safe side. Thus, the maximum monthly rent Susan can afford to pay is $1,708.
Therefore, Susan can afford a maximum monthly rent of $1,708.