Question

Manuel Labore earns $19.50 / hr. and works an average of 38 hours a week. He is considering to renting a house for $1,700 / month. His real estate friend recommends he spends no more than 28% of his monthly income in housing.

A) What is 28% of Manuel’s monthly income?

B) Can he afford the home

Answer 1

A. $829.92 B. No

Explanation:

A. 38 hours time $19.50 = $741 per week; Monthly: $741 x 4 = $2,964.00

28% of monthy income = .28 x $2,964.00 = $829.94

B. No, he can not afford the home. Cost of the home is $1, 700.00

( No more than 28%) well 28% of $2,964 = $829.94

Answer 2

see below

Explanation:

assuming 4 weeks in a month

$19.50 * 38 * 4 = $ 2964 per month

.28 * 2964 = 829.92

He really cannot afford this rent......