Question

Gias gross annual salary is 46,392. what is the recommended maximum monthly rent she should pay?

Answer 1

Answer:

Annual Salary of Gias = $ 46,392

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

Since, monthly rent is housing finance.

28% of $ 46,392

$=\frac{28}{100}\times 46392\\\\ =12989.76$

Monthly rent

$=\frac{12989.76}{12}\\\\=1082.48$

Maximum monthly rent paid by Gias = $ 1082.48

Option A: 1082

Answer 2

The maximum monthly rent that she should pay is 2,784.
Solution:
1,082 x 12 months = 12,984
1,648 x 12 months = 19,776
1,933 x 12 months = 23,196
2,784 x 12 months = 33,408

Since her annual salary is 46,392, she can still afford to pay the rent for 2,784 per month, which equals to 33,408 annually.