To find out how much Stacy should budget towards rent/mortgage per month based on her net monthly income and the suggested percentage, we can follow these steps:
Step 1: Identify the net monthly income
From question 4, Stacy's net monthly income is:
- Net Monthly Income = $2,475.72
Step 2: Determine the percentage allocation for rent/mortgage
It is suggested that one should spend no more than 25% of their net income on rent/mortgage expenses.
Step 3: Calculate the amount to budget for rent/mortgage
To calculate how much Stacy should budget for rent/mortgage, we need to take 25% of her net monthly income:
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Convert the percentage to a decimal by dividing by 100: \[ 25% = 0.25 \]
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Multiply the net monthly income by the percentage (in decimal form): \[ \text{Amount for Rent/Mortgage} = 2,475.72 \times 0.25 \]
Step 4: Perform the calculation
\[ 2,475.72 \times 0.25 = 618.93 \]
Step 5: Result
Stacy should budget approximately $618.93 towards rent/mortgage per month.