Question

Ron makes $2,980 a month. What is the maximum monthly rent he can afford?

$655.60

$745

$834.40

$774.80

Answer 1

the max he can afford is $834.40

Answer 2

Answer with explanation:

Amount earned by Ron Monthly = $ 2,980

To find maximum monthly rent that Ron ,Could afford, we will use
`(28)/(36)` rule, which states that ,28% of monthly gross income should be used for debt purposes and 36% of monthly gross income should be used for debt Purposes.

Maximum Monthly rent that Ron could afford

=28% of $2,980

`=\frac{28}[100}* 2980\\\\=(28 * 298)/(10)\\\\=(8344)/(10)\\\\=834.40`

Option C: $ 834.40