Kathleen’s gross annual salary is $56,820.

What is the maximum amount of rent she can afford to pay?

Question

Kathleen’s gross annual salary is $56,820.

 What is the maximum amount of rent she can afford to pay?

dtan5457 · Answer

Is that the whole question?

anonymous · Answer

then it tells us to round to the nearest dollar

dtan5457 · Answer

Financial class or something? Don't know how I can find an answer with NO information about the house's actual renting price/rate.

anonymous · Answer

Kathleen’s gross annual salary is $56,820.

 What is the maximum amount of rent she can afford to pay?

 Round your answer to the nearest dollar. 
 (Points : 1)  
       $1146
        $1326
        $1656
        $2368

anonymous · Answer

there the answers

dtan5457 · Answer

Impossible to do without a formula of some sort. I never took finance class, do you have the formula?

anonymous · Answer

there is no formulas

dtan5457 · Answer

Then this question can't be answered due to lack of information, lol.

anonymous · Answer

its fine

dtan5457 · Answer

Typically a house owner should not spend more than 1/3 of their monthly pay on rent..but I just tried that and none of your answer choices directly matched.

dtan5457 · Answer

I think there must be a formula of some sort..

anonymous · Answer

nope

dmndlife24 · Answer

yea there is

anonymous · Answer

you sure?

dmndlife24 · Answer

Oh i think i got it

anonymous · Answer

ok

dmndlife24 · Answer

take annual salary over 12 times 0.3

anonymous · Answer

so 56820 over 12 * 0.3?

dmndlife24 · Answer

yes :D

anonymous · Answer

i got 1,420.5

dmndlife24 · Answer

So i would pick the choice nearest to it

anonymous · Answer

so which one?

anonymous · Answer

i am wiling to bet a little money that somewhere it says "you can pay at most one fifth of your salary" or sommat

dmndlife24 · Answer

It's calculated by finding the appropriate maximum allowable income amount and then multiplying that by 30%

anonymous · Answer

as in?

dmndlife24 · Answer

just take the gross number of your annual salary and divide it by 12 which stands for 12 months in the maximum monthly amount you could even pay for rent

dmndlife24 · Answer

the 0.3 stands for the 30% that you should not exceed

dmndlife24 · Answer

So if those are your choices, i would pick B.

anonymous · Answer

I picked it and next question?

anonymous · Answer

Nick is signing a lease for an apartment that rents for $880/month.

 How much will he pay to move in if he must pay the first and last months’ rent and a security deposit equal to 70% of his monthly rent?

anonymous · Answer

Nick is signing a lease for an apartment that rents for $880/month.

 How much will he pay to move in if he must pay the first and last months’ rent and a security deposit equal to 70% of his monthly rent? 
 (Points : 1)  
       $1760
        $1848
        $2112
        $2376

dmndlife24 · Answer

Take 880 and multiply it by two bc he had to pay first and last months' rent

anonymous · Answer

i got it its 2376

dmndlife24 · Answer

and 70% of a one month payment is 616 so 1760 + 616 = 2376
So yes :D

anonymous · Answer

ok next one please?

anonymous · Answer

Rich is buying a home for $244,800. He is making a 15% down payment and financing the rest with a 25-year loan at 5.25% interest. What will his monthly mortgage payment be?