Question

advice from most financial advisers states to spend no more than 28% of ones gross monthly income for ones mortgage payment, and to spend no more than 36% of ones gross monthly income for ones total monthly debt. suppose a family has a gross annual income of $39,600.
what is the maximum amount the family should spend each month on a mortgage payment?
what is the maximum amount the family should spend each month on total debt obligations?
thats incorrect.
determine the familys gross monthly income from the familys gross annual income. then use the suggested maximum percentage of ones gross monthly income for ones total monthly debt and the familys gross monthly income to determine the maximum amount the family should spend each month on a mortgage payment.

Explanation:

Step1: Calculate gross monthly income

$\text{Gross monthly income} = \frac{\$39600}{12} = \$3300$

Step2: Find max monthly mortgage

$\text{Max mortgage} = 0.28 \times \$3300 = \$924$

Step3: Find max total monthly debt

$\text{Max total debt} = 0.36 \times \$3300 = \$1188$

Answer:

Maximum monthly mortgage payment: $\$924$
Maximum total monthly debt payment: $\$1188$