Question

Jessica's financial advisior believes that she should spend no more than 28% of her gross monthly income for houseing. She has determined that amount is $1400 per month. Based on this amount and her advisor's recommendation, what is Jessica's annual salary?

Answer 1

Answer:

$60,000

Explanation:

The annual salary of Jessica would be

Let us assume the gross monthly income be X

So the equation would be

Gross monthly income × given percentage = Per month amount

X × 28% = $1,400

So, X would be

= $1,400 ÷ 28%

= $5,000

For 12 months, the annual salary would be

= Gross monthly income × total number of months in a year

= $5,000 × 12 months

= $60,000