Question

Maddie has a gross monthly income of $2200. She has 35% of her paycheck withheld as deductions.

She pays $400 for rent. What percent of her net monthly pay goes to rent?

Answer 1

The percent of net income Maddie gives as rent = 29.97%

Explanation:

Given:

Gross monthly income for Maddie = $2200

Percentage of her paycheck withheld = 35%

Amount paid for rent = $400

To find the percent of her net monthly pay that goes to rent.

Solution:

Amount of paycheck withheld as deductions :

⇒ 35% of the gross income

⇒ 35% of $2200

⇒
`0.35* $2200`

⇒ $ 770

Net income = Gross income - deductions =
`\$2200-\$770` = $1430

Percentage of net income given as rent is given as :

⇒
`(Amount\ given\ as\ rent)/(Net\ income)* 100`

⇒
`(400)/(1430)* 100`

⇒ 27.97% (Answer)