A beginning service technician earns $400 per week. How much should the technician spend on a vehicle payment?

Question

Quizplus · Accepted Answer

A general rule of thumb for budgeting is that a car payment should not exceed 15-20% of your monthly take-home pay. In this case, the technician earns $400 per week, which translates to approximately $1600 per month ($400 x 4). 20% of $1600 is $320. However, since $320 is not an option and the closest option that does not exceed the recommended percentage is $400 per month, option B is the most suitable choice given the options provided.

A Beginning Service Technician Earns $400 Per Week