Question

Your parents have a realized income of $1,046.78/every 2 weeks. How much should the monthly housing expense budget be to stay within acceptable limits?

Answer 1

Answer: $586.20 is the correct answer. I had it on a test.

Answer 2

Answer with explanation:

Income earned by my parents in every two weeks = $ 1046.78

In two weeks there are 14 days, so income earned by my parents in 1 day

`=(1046.78)/(14)\\\\74.77`

Income of my parents after a month, if there are 30 days in a month = $74.77 × 30= $ 2243.10

We, will use ,
`(28)/(36)` rule here , which states that , 28% of monthly income of my parents, should be used for monthly housing expenses ,and 36% of gross monthly income should be used for debt purposes.

28% of $2243.78

`=(28)/(100)*2243.78\\\\=(62825.84)/(100)\\\\=628.2584`

= $ 628.26 (Approx)

So,my parents, monthly housing expense should not exceed ≥ $ 628.26