Question

A family has a yearly income of $40,000. They want to spend no more than 30% of their income on rent for their house. How much is the max they can spend per month on rent?

$1,000

$1,200

$900

$800

Answer 1

$1,000

Explanation:

30% of $40,000 is total spendable for year

0.3*40000=12,000 yearly for rent - need to divide by 12 for monthly rent

$12,000/12 =$1000 per month maximum.