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# In 1986 in Newark, what was the approximate ratio of the med

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In 1986 in Newark, what was the approximate ratio of the med [#permalink]  25 Feb 2017, 09:16
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Question Stats:

94% (01:04) correct 5% (00:00) wrong based on 17 sessions

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* Housing cost consists of a mortgage payment, real estate taxes, utilities and hazard insurance.

In 1986 in Newark, what was the approximate ratio of the median annual housing cost to the median homebuyer's annual income?

A) $$\frac{1}{7}$$

B) $$\frac{1}{6}$$

C) $$\frac{1}{4}$$

D) $$\frac{1}{3}$$

E) $$\frac{2}{5}$$
[Reveal] Spoiler: OA

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Kudos [?]: 1820 [2] , given: 397

Re: In 1986 in Newark, what was the approximate ratio of the med [#permalink]  04 Mar 2017, 17:40
2
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Explanation

the median annual housing cost in Newwark; The monthly housing cost in Newark was $1,139. Find the annual housing cost: $$1,139 \times 12 = 13,668$$ The home buyer's annual income in Newark was$54,660. Thus, the ratio is 13,668 : 54,660 or $$\frac{13,668}{54,660}$$ or 0.25. The approximate answer is 1/4.

Hence option C is correct.
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Sandy
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