Question

1770va v math of finance sem a- a
components of renting
zahara earns $2,745 per month. she has monthly expenses of $1,089 excluding rent. she does not want her rent to
exceed 40% of her monthly income. what is the max amount she is willing to spend on rent each month?
$1,098
$1,656
$435.60
$1,647

Explanation:

Step1: Calculate 40% of monthly income

Zahara's monthly income is \$2,745. 40% of this is calculated as \( 0.40\times2745 = 1098 \).

Step2: Verify with expense (though not necessary for max rent)

Her non - rent expenses are \$1,089, but the limit is based on 40% of income. So the maximum she can spend on rent is \$1,098.

Answer:

\$1,098