Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $37,200. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 80% of the maximum, they can afford, what is the maximum amount they should spend each month for all other debt? a. The maximum monthly mortgage payment should be $______. b. The maximum monthly total credit obligations should be $__________. c. The maximum amount they should spend monthly on all other debt is $________.
Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $37,200. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 80% of the maximum, they can afford, what is the maximum amount they should spend each month for all other debt? a. The maximum monthly mortgage payment should be $______. b. The maximum monthly total credit obligations should be $__________. c. The maximum amount they should spend monthly on all other debt is $________.
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter5: Making Automobile And Housing Decisions
Section: Chapter Questions
Problem 4FPE
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Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment and to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $37,200.
a. What is the maximum amount the family should spend each month on a mortgage payment?
b. What is the maximum amount the family should spend each month for total credit obligations?
c. If the family's monthly mortgage payment is 80% of the maximum, they can afford, what is the maximum amount they should spend each month for all other debt?
a. The maximum monthly mortgage payment should be
$______.
b. The maximum monthly total credit obligations should be
$__________.
c. The maximum amount they should spend monthly on all other debt is
$________.
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