Question

Using the 25% rule, what is the maximum amount that a house payment should be if your monthly salary is $2,400?
A. $425.00 per month
B. $500.00 per month
C. $600.00 per month
D. $800.00 per month

Answer 1

Simply find 25% of $2,400. Convert 25% to a decimal fraction and multiply $2,400 by that fraction.

Answer 2

Remember when converting percentages to decimal you always move the decimal point to the left twice. You move it to the right when converting a decimal to a percent.