Question

components of renting
peretz earns $5,475 per month. he has monthly expenses of $2,134 excluding rent. he does not want his rent to exceed 25% of his monthly income. what is the max amount he is willing to spend on rent each month?
$3,341 $4,106.25 $533.50 $1,368.75

Explanation:

Step1: Identify the relevant income

Peretz's monthly income is \$5,475.

Step2: Calculate 25% of the income

To find 25% of \$5,475, we use the formula: \( \text{Amount} = 0.25 \times \text{Income} \)
Substituting the income value: \( 0.25 \times 5475 = 1368.75 \)
So the maximum amount he is willing to spend on rent each month is \$1,368.75.

Answer:

\$1,368.75