Question
You (or your parents) have a realized income of $1,046.78/every 2 weeks. How much should the monthly housing expense budget be to stay within acceptable limits? Round to the nearest penny.
Answers
GPT-4o mini
To determine an appropriate monthly housing expense budget based on a biweekly income of $1,046.78, we first need to calculate the total monthly income.
Since there are 26 biweekly periods in a year, we can calculate the monthly income as follows:
1. **Calculate annual income**:
\[
\text{Annual Income} = \text{Biweekly Income} \times 26 = 1,046.78 \times 26 \approx 27,216.28
\]
2. **Calculate monthly income**:
\[
\text{Monthly Income} = \frac{\text{Annual Income}}{12} \approx \frac{27,216.28}{12} \approx 2,268.02
\]
3. **Determine acceptable housing expense percentage**:
A common guideline for housing expenses is that they should not exceed 30% of your gross monthly income.
4. **Calculate maximum housing expense**:
\[
\text{Maximum Housing Expense} = \text{Monthly Income} \times 0.30 \approx 2,268.02 \times 0.30 \approx 680.41
\]
Thus, the monthly housing expense budget to stay within acceptable limits should be approximately **$680.41**.
Since there are 26 biweekly periods in a year, we can calculate the monthly income as follows:
1. **Calculate annual income**:
\[
\text{Annual Income} = \text{Biweekly Income} \times 26 = 1,046.78 \times 26 \approx 27,216.28
\]
2. **Calculate monthly income**:
\[
\text{Monthly Income} = \frac{\text{Annual Income}}{12} \approx \frac{27,216.28}{12} \approx 2,268.02
\]
3. **Determine acceptable housing expense percentage**:
A common guideline for housing expenses is that they should not exceed 30% of your gross monthly income.
4. **Calculate maximum housing expense**:
\[
\text{Maximum Housing Expense} = \text{Monthly Income} \times 0.30 \approx 2,268.02 \times 0.30 \approx 680.41
\]
Thus, the monthly housing expense budget to stay within acceptable limits should be approximately **$680.41**.