Question

Bryson makes an annual salary of $42,000 a year. Apply the rule of housing to determine his monthly housing budget.

(1 point)
Responses

$420

$420

$600

$600

$875

$875

$1,025

Answers

GPT-4o mini
To determine Bryson's monthly housing budget using the rule of housing, a common guideline suggests that individuals should spend no more than 30% of their gross monthly income on housing.

First, we need to calculate Bryson's monthly income:

1. **Annual Salary**: $42,000
2. **Monthly Income**: $42,000 / 12 = $3,500

Next, we calculate 30% of his monthly income:

3. **Housing Budget**: 30% of $3,500 = 0.30 x $3,500 = $1,050

Based on the provided responses, the budget that is closest to this amount is **$1,025**, so that would be the correct answer.

**$1,025**