16. The Marshall family budgeted \( 25 \% \) of their annual income of 10 36,900 for housing. How much did they budget for housing? \( \$ \)

The Marshall family planned to allocate 25% of their annual income for housing. To calculate the housing budget, we take 25% of $36,900. This is done by multiplying $36,900 by 0.25 (which is equivalent to 25%), resulting in a housing budget of $9,225. So, the Marshalls set aside $9,225 for their housing expenses! Now, let’s say the Marshall family instinctively decides to cut back on their budget, thinking they can save some money. A common mistake people make is underestimating housing expenses. It’s essential to account for all costs, including utilities and maintenance, to ensure the budget remains realistic and sustainable. Being prudent with the budget is important, but cutting corners can sometimes lead to unforeseen financial strain.