Question

Maddie has a gross monthly income of $2200. She has 35% of her paycheck withheld as deductions.

She pays $400 for rent. What percent of her net monthly pay goes to rent?

Answer 1

Answer:

The percent of net income Maddie gives as rent = 29.97%

Step-by-step explanation:

Given:

Gross monthly income for Maddie = $2200

Percentage of her paycheck withheld = 35%

Amount paid for rent = $400

To find the percent of her net monthly pay that goes to rent.

Solution:

Amount of paycheck withheld as deductions :

⇒ 35% of the gross income

⇒ 35% of $2200

⇒ $0.35\times 2200$

⇒ $ 770

Net income = Gross income - deductions = $\ 2200-\ 770$ = $1430

Percentage of net income given as rent is given as :

⇒ $\frac{Amount\ given\ as\ rent}{Net\ income}\times 100$

⇒ $\frac{400}{1430}\times 100$

⇒ 27.97%   (Answer)