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Family A earns $ 60,000 and rents its residence, and this fa
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06 Aug 2020, 07:28
06 Aug 2020, 07:28
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Family A earns $ 60,000 and rents its residence, and this family is in the category of housing cost as a percent of income that contains about 3.5 million renters. Family B makes $ 85,000 and owns its residence with a mortgage, and this family is in the category of housing cost as a percent of income that contains about 8 million owners. Which of the following could be the difference between the amounts the two families pay for housing?
Indicate all such values.
A. $ 14,500
B. $ 8,200
C. $ 4,000
D. $ 3,700
E. $ 3,165
F. $ 0
Re: Family A earns $ 60,000 and rents its residence, and this fa
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Updated on: 29 Sep 2020, 21:42
Updated on: 29 Sep 2020, 21:42
1
From the graph 2, we can see that Family B lies in 16% (16% of 49.5M is close to 8M owners), while from graph 3, we can see that Family A lies in 9% (9% of 37.5M is close to 3.5M owners).
Now, Family A earns 60,000 and pays 30% - 34.9% (9% pay that much) for housing cost and Family B pays 20% - 24.9% (16% pay that much) of their 85,000 earned.
Thus, amount payed by Family A is somewhere between 18,000 - 20,940 and that for Family B is 17,000 - 21,165.
On taking the difference, we get the range of 3,940 and 3,165. Family B can also pay 18,000, since it lies in that range.
Hence answer is D, E, F.
Now, Family A earns 60,000 and pays 30% - 34.9% (9% pay that much) for housing cost and Family B pays 20% - 24.9% (16% pay that much) of their 85,000 earned.
Thus, amount payed by Family A is somewhere between 18,000 - 20,940 and that for Family B is 17,000 - 21,165.
On taking the difference, we get the range of 3,940 and 3,165. Family B can also pay 18,000, since it lies in that range.
Hence answer is D, E, F.
Re: Family A earns $ 60,000 and rents its residence, and this fa
[#permalink]
29 Sep 2020, 21:51
29 Sep 2020, 21:51
1
Shubham51 wrote:
how , Family A earns 60,000 and pays 30% - 34.9% (9% pay that much) for housing cost and Family B pays 20% - 24.9% ,how they are saying a A pays 30-40?
The 2nd graph (U.S. Housing cost as a percent of income: Renter) shows that there are total of 37.5M. Family A lies in the category where there are 3.5M renters.
Thus, 9% of 37.5M is near to 3.5M.
Hence, the family A lies in 30% - 34.9%.
Hope it is clear now.
