FLASHCARD: Ch. 7.1 - 7.2 (Math for Finance)

Front

What does rent typically not include?

Back

Utilities such as electricity, water, internet, etc.

Front

What is the maximum percentage of your monthly income that should be spent on housing?

Back

30% of your entire monthly income.

Front

If you have a system of equations for moving costs, what does each variable represent?

Back

Each variable represents the hourly pay rate for loading/unloading trucks.

Front

What is the formula to calculate your annual salary based on monthly rent and percentage recommendations?

Back

Annual Salary = (Monthly Rent / Percentage) x 12.

Front

What is the average cost per square foot in South Beach Miami?

Back

$722.

Front

What is a system of equations?

Back

A set of equations with the same variables that can be solved together.

Front

How do you calculate the cost per square foot?

Back

Cost per square foot = Total cost / Total square footage.

Front

What is gross monthly income?

Back

The total income earned in a month before any deductions.

Front

What does it mean to budget for housing?

Back

Allocating a specific percentage of income to cover housing costs.

Front

What is the significance of the 30% rule in housing?

Back

It suggests that no more than 30% of income should be spent on housing to maintain financial health.