select the correct answer. brenda earns $1,700 per month after taxes. she is working on her budget and has…

select the correct answer. brenda earns $1,700 per month after taxes. she is working on her budget and has the first three categories finished. housing $612 food $238 transportation $370 what is the problem with this budget? a. she is budgeting more than the highest recommended for transportation. b. she has used the highest recommended percentages for the three categories. c. she has allotted more than 36% of her income for housing. d. she is budgeting too little for transportation.

select the correct answer. brenda earns $1,700 per month after taxes. she is working on her budget and has the first three categories finished. housing $612 food $238 transportation $370 what is the problem with this budget? a. she is budgeting more than the highest recommended for transportation. b. she has used the highest recommended percentages for the three categories. c. she has allotted more than 36% of her income for housing. d. she is budgeting too little for transportation.

Answer

Explanation:

Step1: Calculate housing - percentage

Calculate the percentage of income spent on housing. The formula is $\frac{\text{Housing amount}}{\text{Total income}}\times100%$. So, $\frac{612}{1700}\times 100%=\frac{61200}{1700}=36%$.

Step2: Analyze each option

  • Option A: There is no information given about the highest - recommended amount for transportation, so we can't determine this.
  • Option B: There is no information about the highest - recommended percentages for these three categories in general terms, so we can't determine this.
  • Option C: Since $\frac{612}{1700}\times100% = 36%$, she has allotted exactly 36% of her income for housing, not more than 36%.
  • Option D: There is no information given about the appropriate amount for transportation, so we can't determine this.

However, if we assume common financial advice that housing should be no more than 30 - 36% of income, and she is at the upper - limit. But if we consider the strict interpretation of the question based on the given data and options, we calculate the housing percentage as above.

If we assume standard financial guidelines where housing should ideally be less than 36% of income in a more comfortable budget situation, the problem with the budget is that she has allotted the maximum recommended percentage for housing. But among the given options, the closest correct one based on the calculation is that she has allotted 36% of her income for housing.

Answer: C. She has allotted more than 36% of her income for housing.