Answer with explanation:
Amount earned by Ron Monthly = $ 2,980
To find maximum monthly rent that Ron ,Could afford, we will use [tex]\frac{28}{36}[/tex] rule, which states that ,28% of monthly gross income should be used for debt purposes and 36% of monthly gross income should be used for debt Purposes.
Maximum Monthly rent that Ron could afford
=28% of $2,980
[tex]=\frac{28}[100}\times 2980\\\\=\frac{28 \times 298}{10}\\\\=\frac{8344}{10}\\\\=834.40[/tex]
Option C: $ 834.40
