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

What is the monthly rent? Can Jacob afford this rental if he makes 8,000 each month-example-1

1 Answer

2 votes

Solution

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

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