Question

Isaac's gross annual salary is $56,953.

What is the maximum monthly rent he can afford?

Round to the nearest dollar.

Question 1 options:

$1187

$1329

$1424

$1661

Answer 1

honestly this is the first time I've heard of this rule but apparently the method they want you to use:

1. divide the gross annual salary by 12 to get a monthly salary
2. take 28% of that monthly income to get the max monthly rent

apply these steps to your problem