Answer:
C. $875
Step-by-step explanation:
The rule of housing is the rule of thumb of not using more than 25% of your gross income. This means that the households supposed limited expenses on housing would be a maximum of 25% only.
So to find the monthly housing budget of Bryson, we simply take his annual salary and multiply it by 25% or 0.25 and then divide the product by 12.
Monthly Housing Budget = ($42,000 * 0.25)/12
Monthly Housing Budget = 10500/12
Monthly Housing Budget = $875
