Question

A common rule is that housing expenses should not be more than 28% of your monthly income. Your monthly income is $3,200. How much can you spend on housing? a) $364 b) $896 c) $1,137 d) $1,576

Answer 1

$3,200·0.28=$896

The answer is B.

Answer 2

b. $896.

Explanation:

We have been given that a common rule is that housing expenses should not be more than 28% of your monthly income. Your monthly income is $3,200.

To find the amount of money we can spend on housing, we need to figure out 28% of $3200.

`\text{Amount we can spend on housing}=(28)/(100)* \$3200`

`\text{Amount we can spend on housing}=0.28* \$3200`

`\text{Amount we can spend on housing}=\$896`

Therefore, we can spend $896 on housing and option 'b' is the correct choice.