Question

When signing the lease for his $950.00 per month rental property, Stanley will have to pay for the first month's rent, last month's rent, and a security deposit equal to 40% of one month's rent. if Stanley currently earn an average bi-weekly net pay of $1,125.00, determine what percent of his monthly pay he will need to save if he wants to save enough money to sign a lease in 3 months. round to the nearest tenth. 22.3% 23.4% 25.9% 31.2%

Answer 1

First, let's calculate the total amount that needs to be paid.

Since the payment is 2 months and 40% of a month, we have:

`\begin{gathered} 2\cdot950+0.4\cdot950_{} \\ =1900+380 \\ =2280 \end{gathered}`

Now, let's calculate the total earning in 3 months, with a bi-weekly payment of $1125.00 and considering that 3 months have 13 weeks:

`1125\cdot(13)/(2)=7312.5`

Now, to find the percentage, let's divide the total cost by the total earning:

`(2280)/(7312.5)=0.312=31.2\text{\%}`

Therefore the correct option is the fourth one.