Question

It is recommended that you don't spend over 20% of your annual salary on housing if I make 55000 a year, what should my budget be on housing?

Answer 1

$11,000

Step-by-step explanation:

Annual Salary = $55,000

The recommendation is that you do not spend over 20% of your annual salary on housing.

Therefore, the maximum amount that can be budgeted for housing will be:

`\begin{gathered} =20\%\text{ of Annual Salary} \\ =20\%\text{ of 55,000} \end{gathered}`

We simplify our result.

`\begin{gathered} =(20)/(100)*55,000 \\ =20*550 \\ =\$11,000 \end{gathered}`

You should not budget more than $11,000.