Question

Caroline's gross annual salary is $47,448 what is the maximum amount of rent she can afford to pay?

Answer 1

Answer:

Yearly Salary of Caroline = $ 47,448

Monthly salary of Caroline

             $=\frac{47448}{12}\\\\=3954$

As, 28/36 rule states that maximum of 28% of your monthly expenditure should be spent on housing finances.

28 % of $ 3954

$=\frac{28}{100}*3954\\\\=\frac{110712}{100}\\\\=1107.12$  

Option A) $ 1107 is , that maximum amount of rent that Caroline can pay.

Answer 2

The awser is letter a