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 $48,000 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 $48,000 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 $
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
Problem 1PS
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Advice from most financial advisers states to spend no more than26%of one's gross monthly income for one's mortgage paynent and to spend no more than36%of ceie's gross miontily income for one's tolal monthly debt Sappose a family has a gruss annaal income of$48,000a. What is the masmum amount the family should spend each month on a morigage payment? b. What is the maximum amount the family should spend each month for lotal creda obligations? c. If the familys monthy mortgage poymect is so\% of the maximuni they can allotd. what is the maximum amount they should spend each manth for all ocher debe?
a. The maimum monthy mortgage payment should be ?
b. The mavimum monthly total credit obligations should be s
6. The maximum amount they should spend monthy on al other debt is s
Transcribed Image Text:K
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 $48,000
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
SIXTE
19
6
C
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