Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Connect with a community of experts ready to provide precise solutions to your questions on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Rex makes 12.50 per hour. He works 35 hours a week. He pays 24% Of his gross earnings in federal and state taxes and saves 10% of his monthly gross income. He is considering renting an apartment that will cost 1600 per month.

A. Is this monthly rental fee within the recommended 25%-30% housing expense range?

B. Based upon his expenses, can he make the monthly payments?

Sagot :

mhanifa

Answer:

  • See below

Step-by-step explanation:

Monthly gross income:

  • 12.50*35*4 = 1750

Taxes:

  • 1750*24/100 = 420

Saving amount:

  • 1750*10/100 = 175

Net income:

  • 1750 - 420 - 175 = 1155

A. The rental amount is more than Rex's net income, so the answer is No

B. He is left with negative balance, so this is also No

Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.