**Problem Statement: Financial Planning for Housing Expenses****Scenario:**Milena has a gross biweekly income of $2,200. She pays 18% in federal and state taxes, puts aside 10% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that rents for $1,200 per month.**Questions:**a. Is this monthly rental fee within the recommended 25%-30% housing expense range?b. Based on her expenses, can she make the monthly payments?**Additional Information:**Broker's fee: 12% of 1 year's rent**Analysis:**1. **Calculate Monthly Income:** - Gross biweekly income: $2,200 - Convert biweekly to monthly: $2,200 * 2 = $4,400 2. **Deductions:** - Taxes: 18% of $4,400 = 0.18 * $4,400 = $792 - School loan: 10% of $4,400 = 0.10 * $4,400 = $440 - Savings: 5% of $4,400 = 0.05 * $4,400 = $2203. **Net Monthly Income after Deductions:** - Total deductions: $792 (taxes) + $440 (school loan) + $220 (savings) = $1,452 - Net income: $4,400 - $1,452 = $2,948 4. **Housing Expense Analysis:** - Recommended housing expense range (25%-30% of net income): - 25% of $2,948: 0.25 * $2,948 = $737 - 30% of $2,948: 0.30 * $2,948 = $8845. **Comparison:** - Proposed rent: $1,200 - The proposed rent ($1,200) exceeds the recommended housing expense range of $737 - $884.**Conclusion for Part (a):**- The monthly rental fee of $1,200 is not within the recommended 25%-30% housing expense range.**Conclusion for Part (b):**- Based on her expenses, if Milena chooses to rent the apartment for $1,

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Broker's fee: 12% of I year's rent 6. Milena has a gross biweekly income of $2,200. She pays 18% in federal and state taxes, puts aside 10% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that rents for $1,200 per month. a. Is this monthly rental fee within the recommended 25%-30 % housing expense range? h Based on her exnensescan che nake the athly

Broker's fee: 12% of I year's rent 6. Milena has a gross biweekly income of $2,200. She pays 18% in federal and state taxes, puts aside 10% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that rents for $1,200 per month. a. Is this monthly rental fee within the recommended 25%-30 % housing expense range? h Based on her exnensescan che nake the athly

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

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Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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Question

**Problem Statement: Financial Planning for Housing Expenses**

**Scenario:**
Milena has a gross biweekly income of $2,200. She pays 18% in federal and state taxes, puts aside 10% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that rents for $1,200 per month.

**Questions:**
a. Is this monthly rental fee within the recommended 25%-30% housing expense range?
b. Based on her expenses, can she make the monthly payments?

**Additional Information:**
Broker's fee: 12% of 1 year's rent

**Analysis:**

1. **Calculate Monthly Income:**
- Gross biweekly income: $2,200
- Convert biweekly to monthly: $2,200 * 2 = $4,400

2. **Deductions:**
- Taxes: 18% of $4,400 = 0.18 * $4,400 = $792
- School loan: 10% of $4,400 = 0.10 * $4,400 = $440
- Savings: 5% of $4,400 = 0.05 * $4,400 = $220

3. **Net Monthly Income after Deductions:**
- Total deductions: $792 (taxes) + $440 (school loan) + $220 (savings) = $1,452
- Net income: $4,400 - $1,452 = $2,948

4. **Housing Expense Analysis:**
- Recommended housing expense range (25%-30% of net income):
- 25% of $2,948: 0.25 * $2,948 = $737
- 30% of $2,948: 0.30 * $2,948 = $884

5. **Comparison:**
- Proposed rent: $1,200
- The proposed rent ($1,200) exceeds the recommended housing expense range of $737 - $884.

**Conclusion for Part (a):**
- The monthly rental fee of $1,200 is not within the recommended 25%-30% housing expense range.

**Conclusion for Part (b):**
- Based on her expenses, if Milena chooses to rent the apartment for $1,

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