Question

Laura's gross annual salary is $44184. What is the maximum amount of rent she can afford to pay?

Answer 1

$1031 will be the answer I believe

Answer 2

Answer with Explanation:

Annual Gross Salary of Laura = $ 44184

Monthly Salary of Laura

          $=\frac{44184}{12}\\\\=3682$

We will use $\frac{28}{36}$ rule here, which states that ,28% of monthly income should be used for housing expenses and 36% of gross income should be used for different debt purposes.

28% of  $3682

$=\frac{28}{100} * 3682\\\\=\frac{103096}{100}\\\\=1030.96$  

Maximum amount of rent , that Laura can afford to pay, having gross salary of $ 44184 = $ 1030.96