Question

herman has a monthly income of $4,500. after accounting for all his expenses, he has set aside 28% of his income for rent. he finds an apartment that costs $1,200 per month. does this fit within his budget for rent? it is slightly over his budgeted amount. it is way over his budgeted amount. it is slightly lower than his budgeted amount. it is way under his budgeted amount.

Explanation:

Step1: Calculate budgeted rent

To find 28% of $4,500, we use the formula: $4500\times0.28$.
$4500\times0.28 = 1260$.

Step2: Compare with apartment cost

The apartment costs $1,200. Since $1200 < 1260$, we check the difference: $1260 - 1200 = 60$. The difference is small, so it is slightly lower than the budgeted amount.

Answer:

It is slightly lower than his budgeted amount.