1. Abe makes $18.50 per hour. He works 37 hours a week. He pays 23% of his gross earnings in
federal and state taxes and saves 5% of his monthly gross income. He is considering renting an
apartment that will cost $1,500 per month.
a. Is this monthly rental fee within the recommended 25-30% housing expense range?
b. Based on his expenses, can he make the monthly payments?