Question

1. Ron makes $1,659 a month. What is the maximum monthly rent he can afford?
$414.75
$447.93
$464.52
$774.80
2. You should be able to spend a little over 1/4 of your gross monthly pay on rent.
True
False
3. If Michelle makes $3,780 in monthly gross pay, what is the maximum she can afford to pay for rent?
$1,058.40
$1,020.60
$907.20
$793.80

Answer 1

Here are my notes for monthly rents:

Landlords typically require that your annual income is at least 40 times the monthly rent. For example, if you and your roommate are looking at a $3,000 per month apartment, the landlord would require a combined income of $3,000 × 40, which equals $120,000. To determine how much rent you (and your potential roommates) can afford, simply divide your combined annual incomes by 40.

I hope my guide has come to your help. God bless and have a nice day ahead!

Answer 2

Hello there.

1. Ron makes $1,659 a month. What is the maximum monthly rent he can afford? 

$414.75