Question

Gretchen's gross annual salary is $45,522. What is the maximum amount of rent shecan afford to pay per month? Round answer to the nearest whole number.

Answer 1

$\ 1,138$

1) There are some ways of calculating an estimate of how much should Gretchen pay per month.

2) Let's pick one rule of thumb, that states that we cannot or should not pay more than 30% of our income with rent.

So let's do it considering that Gretchen's gross salary is $45,522

$\begin{gathered} 45522\times0.3=13656.6 \\ \frac{13656}{12}=1138.05\approx1,138.05 \end{gathered}$

So Gretchen should spend a maximum of $1138.05