Question

What is the monthly rent? Can Jacob afford this rental if he makes 8,000 each month?

Answer 1

We are given the function

`y=1.165x+615.23`

Part A

We want to find the monthly rent for an apartment that has 1,500 sq.ft

We only need to put x = 1500 and then compute

`\begin{gathered} y=1.165x+615.23 \\ \text{put x = 1500} \\ y=1.165(1500)+615.23 \\ y=1747.5+615.23 \\ y=2362.73 \end{gathered}`

Therefore, the monthly rent is $ 2362.73

Part B

28% of the monthly gross income is on housing

If Jacob makes $ 8,000. We want to determine if Jacob can afford the rental

Jacob will spend 28% on housing

`\begin{gathered} (28)/(100)*8000 \\ =28*80 \\ =2240 \end{gathered}`

Jacob can only spend $2240 0n housing

Since the monthly rent ($2362.73) is greater than Jacob's recommendation percentage on housing ($2240), Therefore, Jacob CANNOT afford it.n