Question

Nina's monthly budget is $2,250. Every month she makes the following payments: $175 for insurance, $129 for utilities, $283 for taxes. Which is the highest house payment she can afford?

A.) House A - monthly payment: $1,580.89.
B.) House B - monthly payment: $1,790.25.
C.) House C - monthly payment: $1,989.23.

Answer 1

(Option A) Nina can afford a house with a monthly payment of $1,580.89.

Step-by-step explanation:

To find the highest house payment that Nina can afford, we need to subtract her monthly expenses from her monthly budget. Her monthly expenses are: $175 for insurance, $129 for utilities, and $283 for taxes. So, her total monthly expenses are $175 + $129 + $283 = $587.

Now, we subtract her total monthly expenses from her monthly budget: $2,250 - $587 = $1,663.

Therefore, the highest house payment Nina can afford is $1,663. Among the options given, she can afford House A with a monthly payment of $1,580.89. So, the correct answer is (Option A) House A - monthly payment: $1,580.89.

Answer 2

The total costs that Nina would have to pay is the sum of the cost of insurance, utilities, and taxes.
C = $175 + $129 + $283 = $587
The highest house payment she could afford is then the difference between her budget and the costs,
P = $2,250 - $587 = $1663
Thus, the answer would be letter B. House B because all the rest of the monthly payment are way over her budget.