To determine Joseph's monthly housing budget using the rule of housing (which commonly suggests that no more than 30% of gross income should be spent on housing), follow these steps:
- Calculate Joseph's annual salary: $29,000.
- Find his monthly salary: \[ \text{Monthly Salary} = \frac{29,000}{12} \approx 2416.67 \]
- Calculate 30% of his monthly salary for the housing budget: \[ \text{Housing Budget} = 0.30 \times 2416.67 \approx 725 \]
Therefore, Joseph's monthly housing budget should be approximately $725.
Since this amount is not among the provided response options, it appears there may have been an error in the potential answers. Upon review of the listed options, the closest consideration that might align with standard practice may be slightly off; however, according to the 30% rule, it should be $725.
1 answer