00:01
In this question, we have a person who's making $18 .50 per hour at their job and working 37 hours per week.
00:08
They have a certain amount of their gross income put away into taxes and savings, and they want to know if they can afford $1 ,500 per month to be spent on housing on an apartment.
00:20
So we need to first calculate this person's monthly salary.
00:23
And the way we do that is we take how much they make per week.
00:27
So $18 .50, which is just $18 .5.
00:31
Multiply by the number of hours per week they work and multiply by 52, which is the number of weeks in a year.
00:41
When we do that, we get 18 .5 times 37 times 52 equals $35 ,000, roughly speaking.
00:56
And now we need to figure out how much this person makes on a monthly basis.
01:01
So we're going to take that number, 35 ,000.
01:04
Thousand dollars and we're going to divide by 12 because there are 12 months in a year.
01:12
When we do that, we get $2 ,966 .16.
01:20
So now to calculate the 25 to 30 % range, we want to know, does this apartment that's $1 ,500 per month, does that fit within the 25 to 30 % range? recommended range for monthly spending on housing.
01:37
So i'm going to set it up as follows.
01:40
2 ,96 .166 times 0 .25.
01:46
That's the 25%.
01:48
We get $741 and 54.
01:57
And we're going to do the same thing times 0 .3, 2966 .16 times 0 .3.
02:06
That's the 30%, the higher end of the range.
02:11
And we get $889 .85.
02:16
So this person's recommended spending on housing does not fall or does not allow them to spend $1 ,500 per month...