Joel earns $1,700 per month every spends for 25 on rent each month what percent of his income does he spend on rent
The correct answer and explanation is:
To find what percent of his income Joel spends on rent, we use this formula: Percent spent on rent=(Amount spent on rentTotal income)×100\text{Percent spent on rent} = \left( \frac{\text{Amount spent on rent}}{\text{Total income}} \right) \times 100
Step-by-Step Calculation:
- Joel’s monthly income = $1,700
- Rent paid each month = $25
Percent=(251700)×100=0.0147×100=1.47%\text{Percent} = \left( \frac{25}{1700} \right) \times 100 = 0.0147 \times 100 = 1.47\%
✅ Correct Answer: 1.47%
📘 Explanation (Around 300 Words):
Understanding how much of your income is allocated to different expenses, such as rent, is an essential part of budgeting and financial planning. In this scenario, Joel earns $1,700 each month and spends $25 of that amount on rent. To determine what percentage of his monthly income this rent represents, we use a basic formula in percentage calculation:
(Part ÷ Whole) × 100 = Percentage
Here, the “part” is the amount spent on rent ($25), and the “whole” is Joel’s total income ($1,700). When you divide 25 by 1700, you get approximately 0.0147. Multiplying that result by 100 converts it into a percentage:
0.0147 × 100 = 1.47%
This means Joel spends only 1.47% of his monthly income on rent, which is unusually low. Most financial experts recommend that individuals spend no more than 30% of their income on housing to maintain a healthy budget. Joel’s situation is therefore financially favorable, leaving him with a significant portion of his income available for savings, investments, or other expenses such as food, transportation, or entertainment.
This exercise not only shows how to perform a percentage calculation but also highlights the importance of financial literacy. Knowing how to analyze and manage expenses in relation to income can help individuals make smarter money decisions and achieve financial goals more efficiently.