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Antawn is looking into getting an apartment that costs $650 per month. Hovw much does he need to make per year in order to comfortably afford this much in rent?

User Mud
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2 Answers

2 votes

Final answer:

Antwan should make at least $26,000 annually to comfortably afford an apartment costing $650 per month, according to the 30% rule for housing expenses.

Step-by-step explanation:

To calculate how much Antawn needs to make per year to comfortably afford an apartment that costs $650 per month, a common rule of thumb is the 30% rule. This rule suggests that no more than 30% of your income should go towards housing. Therefore, let's calculate Antawn's minimum annual income to meet this guideline.

Firstly, we need to find out what 30% of Antawn's monthly income would be if it were solely dedicated to rent:

Rent = 0.30 × Monthly Income

Now, solve for Monthly Income:

Monthly Income = Rent / 0.30

Monthly Income = $650 / 0.30

Monthly Income = $2,166.67

To find the annual income, we simply multiply the monthly income by 12:

Annual Income = Monthly Income × 12

Annual Income = $2,166.67 × 12

Annual Income =0.000

Therefore, Antawn should make at least $26,000 annually to afford an apartment costing $650 per month without financial strain.

User Baalateja Kataru
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5.1k points
4 votes

Answer: 33,800

Step-by-step explanation:

User Kamil Karkus
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6.2k points