Harper makes an annual salary of $60,000 a year. Apply the rule of housing to determine her monthly housing budget. (1 point) Responses $1,000 $1,000 $1,250 $1,250 $2,000 $2,000 $2,500

Answer 1

The rule of housing often suggests that your monthly housing budget should not exceed 30% of your gross monthly income.

First, let's calculate Harper's gross monthly income:

\[ \text{Monthly Salary} = \frac{\text{Annual Salary}}{12} = \frac{60,000}{12} = 5,000 \]

Now, we calculate 30% of her monthly salary to determine her housing budget:

\[ \text{Housing Budget} = 0.30 \times \text{Monthly Salary} = 0.30 \times 5,000 = 1,500 \]

Since $1,500 is not one of the options provided, and if we round down to the closest option, Harper's housing budget would correspond to $1,250.

So, the correct response from the available choices would be $1,250.