Multiple Choice
A trampoline gym charges $6 for \( \frac{1}{2} \) hour. At that rate, what does 1 hour cost?
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1. Introduction to Accounting
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If your monthly net income is $1,250, what should be your maximum amount spent on credit payments according to the 20% rule?
A
$200
B
$125
C
$400
D
$250
Verified step by step guidance1
Understand the 20% rule: This rule suggests that you should spend no more than 20% of your monthly net income on credit payments to maintain financial stability.
Identify the monthly net income provided in the problem, which is $1,250.
Calculate 20% of the monthly net income using the formula: \( \text{Credit Payment Limit} = \text{Net Income} \times 0.20 \).
Substitute the given net income into the formula: \( \text{Credit Payment Limit} = 1250 \times 0.20 \).
Perform the multiplication to determine the maximum amount that should be spent on credit payments according to the 20% rule.
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