Question

determining rent affordability based on budget percentages
freida’s monthly income is $4,675. she is considering three different percentages to use as budgeting for her rent: 20%,
25%, and 30%.
what rent can freida afford based on the different budget percentages? choose the three correct answers.
a 30% budget
allows for a
maximum rent of
$3,745.
a 20% budget
allows for a
maximum rent of
$935.
a 30% budget
allows for a
maximum rent of
$1,402.50.
a 25% budget
allows for a
maximum rent of
$1,168.75.
a 20% budget
allows for a
maximum rent of
$3,272.50.

Explanation:

Step 1: Calculate rent for 20% budget

To find the rent for a 20% budget, we use the formula: Rent = Monthly Income × Percentage.
Freida's monthly income is $4,675, and the percentage is 20% or 0.20.
So, Rent = $4,675 × 0.20 = $935.

Step 2: Calculate rent for 25% budget

For a 25% budget, the percentage is 25% or 0.25.
Using the same formula: Rent = $4,675 × 0.25 = $1,168.75.

Step 3: Calculate rent for 30% budget

For a 30% budget, the percentage is 30% or 0.30.
Using the formula: Rent = $4,675 × 0.30 = $1,402.50.

The incorrect options are:

• "A 30% budget allows for a maximum rent of $3,745" (incorrect calculation, as shown above).
• "A 20% budget allows for a maximum rent of $3,272.50" (incorrect calculation, as shown above).

Answer:

• A 20% budget allows for a maximum rent of $935.
• A 30% budget allows for a maximum rent of $1,402.50.
• A 25% budget allows for a maximum rent of $1,168.75.