Question

Inez heard that as a general rule, she should spend no more than 30% of her take-home pay on rent. If Inez's take-home pay is $46,800 per year, what is the maximum amount per month that she should spend on rent?

A.3900

B.1404

C.2730

D.1170

Answer 1

D.1170

Explanation:

To find how much Inez can pay on rent per month, we first need to find what 30% of her pay take-home pay is.

Pay = $46,800

Total allowed = 46,800 x 0.30

Total allowed = $14,040

Now since we know that there are 12 months in a year, we need to divide the Total allowed by 12 to find how much Inez can pay in rent per month.

14,040 / 12 = $1,170

So Inez can pay $1,170 per month.