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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. If a family's gross annual income is $61,200, use appropriate computations to determine whether the family can afford a $210,000 40-year foxed-rate mortgage at 3.5%. Choose the correct answer below. OA The family can afford the mortgage because the monthly payment is greater than what they should pay each month. O B. The family can afford the mortgage because the monthly payment is less than what they should pay each month. OC. The family cannot afford the mortgage because the monthly payment is greater than what they should pay each month OD. The family cannot afford the mortgage because the monthly payment is less than what they should pay each month.

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. If a family's gross annual income is $61,200, use appropriate computations to determine whether the family can afford a $210,000 40-year foxed-rate mortgage at 3.5%. Choose the correct answer below. OA The family can afford the mortgage because the monthly payment is greater than what they should pay each month. O B. The family can afford the mortgage because the monthly payment is less than what they should pay each month. OC. The family cannot afford the mortgage because the monthly payment is greater than what they should pay each month OD. The family cannot afford the mortgage because the monthly payment is less than what they should pay each month.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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. If a family's gross annual income is $61,200, use appropriate computations to determine whether the family can afford a $210,000 40-year faxed-rate mortgage at 3.5%. Choose the correct answer below. OA The family can afford the mortgage because the monthly payment is greater than what they should pay each month. O B. The family can afford the mortgage because the monthly payment is less than what they should pay each month. OC. The family cannot afford the mortgage because the monthly payment is greater than what they should pay each month. -ces D. The family cannot afford the mortgage because the monthly payment is less than what they should pay each month.
Transcribed Image Text: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. If a family's gross annual income is $61,200, use appropriate computations to determine whether the family can afford a $210,000 40-year faxed-rate mortgage at 3.5%. Choose the correct answer below. OA The family can afford the mortgage because the monthly payment is greater than what they should pay each month. O B. The family can afford the mortgage because the monthly payment is less than what they should pay each month. OC. The family cannot afford the mortgage because the monthly payment is greater than what they should pay each month. -ces D. The family cannot afford the mortgage because the monthly payment is less than what they should pay each month.
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