Ivana Chase has a gross bimonthly income of $2,900. She pays 16% in federal and state taxes, puts aside 12% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that will rent for $1,700 per month.
a. Does this monthly rental fee fall within the recommended 25-30% housing expense range?
b. Based upon her expenses, can she make the monthly payments? How much will remain after she pays for the rent and other expenses?