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21 December, 04:55

Alexandra's gross annual salary is $38,556. What is the maximum amount of rent she can afford to pay? Round your answer to the nearest dollar.

A. $900

B. $1220

C. $1324

D. $1607

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Answers (1)
  1. 21 December, 06:29
    0
    A.$900

    Step-by-step explanation:

    To find how much Alexandra can afford to pay for monthly rent, we first need to find her monthly income.

    Monthly Income = $38,556/12

    Monthly Income = $3,213

    Now since we have the 28/36 rule where a household should only spend a maximum amount of 28% of the gross monthly income we need to multiply the monthly income by 0.28.

    Monthly Rent = $3,213 * 0.28

    Monthly Rent = $899.64 or $900
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