Question

Your parents have a realized income of $1,046.78/every 2 weeks. How much should the monthly housing expense budget be to stay within acceptable limits?

Answer 1

Answer with explanation:

Income earned by my parents in every two weeks = $ 1046.78

In two weeks there are 14 days, so income earned by my parents in 1 day

              $=\frac{1046.78}{14}\\\\74.77$

Income of my parents after a month, if there are 30 days in a month = $74.77 × 30= $ 2243.10

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

28% of $2243.78

$=\frac{28}{100}*2243.78\\\\=\frac{62825.84}{100}\\\\=628.2584$

= $ 628.26 (Approx)

So,my parents, monthly housing expense should not exceed ≥ $ 628.26