Question

Caroline's gross annual salary is $47,448 what is the maximum amount of rent she can afford to pay?

A)$1107
B)$1186
C)$1210
D)$1221

Answer 1

the awser is letter a

Answer 2

Yearly Salary of Caroline = $ 47,448

Monthly salary of Caroline

`=(47448)/(12)\\\\=3954`

As, 28/36 rule states that maximum of 28% of your monthly expenditure should be spent on housing finances.

28 % of $ 3954

`=(28)/(100)*3954\\\\=(110712)/(100)\\\\=1107.12`

Option A) $ 1107 is , that maximum amount of rent that Caroline can pay.