Question

Kathleen's gross annual salary is $56,820.

Answer 1

In general, a maximum of 25% to 30% of one's gross income can be spent on rent. So, according to this lets find out the values.

Given is,

The gross annual salary of Kathleen = $56820

So, her monthly income becomes = $\frac{56820}{12}= 4735$

So, its 25% is = $\frac{25}{100}\times4735$ = 1183.75

And 30% becomes = $\frac{30}{100}\times4735$ = 1420.50

If we take an average of both, as the value will lie between these two figures we get, (1183.75+1420.50)/2 = $1302.12

Hence, this value lies close to $1326. So, the answer will be option B - $1326