Question

Brenda earns $1,700 per month after taxes. She is working on her budget and has the first three categories finished.

Housing $612
Food $238
Transportation $370
What is the problem with this budget?
A.
She is budgeting more than the highest recommended for transportation.
B.
She has used the highest recommended percentages for the three categories.
C.
She has allotted more than 36% of her income for housing.
D.
She is budgeting too little for transportation.

Answer 1

Explanation:

Answer with explanation:

We will use , rule here,which states that , 28% of your gross income should be used for housing finances and 36% of your income , should be used for debt purposes.

Total monthly income of Brenda = $ 1700

→28% of 1700

⇒Total Housing finances, which includes , housing, food and transportation = $ 476

→Option C:

She has allotted more than 36% of her income for housing.

Answer 2

B

Explanation:

Recommended for housing: 30%

X/100 = 612/1700

= 36%

Recommended for food: 10%

X/100 = 238/1700

= 14%

Recommended for transportation 15%

X/100 = 370/1700

= 21.8%