Question

determining hollys maximum rent
a landlord requires tenants to spend no more than 29% of their income on rent. hollys monthly income is $2,789.
what is the maximum rent holly should pay according to the landlords requirement?
$808.81 $961.72 $80,881 $103.30

Explanation:

Step1: Identify the formula

To find the maximum rent, we calculate 29% of Holly's monthly income. The formula is: \( \text{Maximum Rent} = \text{Monthly Income} \times \text{Percentage (in decimal)} \)

Step2: Convert percentage to decimal

29% in decimal form is \( 0.29 \)

Step3: Calculate the maximum rent

Holly's monthly income is $2,789. So, \( 2789 \times 0.29 = 808.81 \)

Answer:

$808.81 (the first option)