Question

Jessica's financial advisior believes that she should spend no more than 28% of her gross monthly income for houseing. She has determined that amount is $1400 per month. Based on this amount and her advisor's recommendation, what is Jessica's annual salary?

Answer 1

Jessica's annual salary is calculated by dividing her housing budget of $1400 by 28% to find her monthly income, then multiplying by 12 to get her annual salary, which is $60,000.

Step-by-step explanation:

Jessica's financial advisor suggests she should not spend more than 28% of her gross monthly income on housing. Given that her monthly housing budget is $1400, we can calculate her gross monthly income by dividing $1400 by 28% (0.28). This calculation shows that her gross monthly income is $5000 ($1400 / 0.28). To find her annual salary, we multiply her monthly income by 12, since there are 12 months in a year. Therefore, Jessica's annual salary is $60,000 ($5000 x 12).

Answer 2

$60,000

Step-by-step explanation:

The annual salary of Jessica would be

Let us assume the gross monthly income be X

So the equation would be

Gross monthly income × given percentage = Per month amount

X × 28% = $1,400

So, X would be

= $1,400 ÷ 28%

= $5,000

For 12 months, the annual salary would be

= Gross monthly income × total number of months in a year

= $5,000 × 12 months

= $60,000