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Doss [256]
3 years ago
15

Pete's monthly housing budget is $2,250. His monthly costs are $215.75 for insurance, $143.50 for utilities, and $273 for taxes.

Which of these houses has the highest monthly payment he can afford?
A.
house A; monthly payment of $1,327.18
B.
house B; monthly payment of $1,550.89
C.
house C; monthly payment of $1,790.25
D.
house D; monthly payment of $1,989.23
Mathematics
1 answer:
Afina-wow [57]3 years ago
6 0

Answer:

Option B.  house B; monthly payment of $1,550.89 is the correct answer.

Step-by-step explanation:

In order to calculate the highest payment Pete can afford we have to subtract his expenses from his housing budget.

Given

Total housing budget = $2250

Monthly costs = $215.75

Utilities = $143.50

Taxes = $273

First all expenses can be added together to subtract from the housing budget.

So

Monthly\ costs = Insurance\ +\ Utilities\ +\ taxes\\ = \$215.75 + \$143.50 + \$273\\= \$632.25

Now the total monthly cost will be subtracted from housing budget.

Amount\ for\ monthly\ payment = Housing\ budget - Monthly\ Expenses\\=\$2250\ -\ \$632.25\\=\$1617.75

Hence, he saves $1617.75 for monthly payment.

Looking at the options, C and D will be ruled out as both the quantities are greater than 1617.75

Option A and B both are smaller than 1617.75 but as $1,550.89>$1,327.18, Option B is the highest monthly payment Pete can afford.

Hence,

Option B.  house B; monthly payment of $1,550.89 is the correct answer.

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