Question

Alicia heard that as a general rule, she should spend no more than one week's pay on rent. If Alicia's pay is $35,256 per year, what is the maximum amount per month that she should spend on rent?

Answer 1

If Alicia pay per year is $35,256 and there are twelve months in a year, then her monthly salary is $35,256/12 = 2,938.
This means that Alicia earns $2, 938 each month.
Conventionally, there are four weeks in a month, thus, Alicia earns $2,938/4 = 734.50. This means that, Alicia earns $734. 50 each week and this is the amount that Alicia is expected to spend on rent on a monthly basis.