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MM150 Survey of Mathematics
$\equiv$ Homework: Unit 6 Lab Homework
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Brylon Beckworth $07 / 16 / 23$ 3:39 PM
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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 $$ 44, 400$ .
a. What is the maximum amount the family should spend each month on a mortgage payment?
b. What is the maximum amount the family should spend each month for total credit obligations?
c. If the family's monthly mortgage payment is $80 %$ of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?
a. The maximum monthly mortgage payment should be $$ 1036$ .
b. The maximum monthly total credit obligations should be $$$
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$1036$ is the maximum amount the family should spend each month on a mortgage payment.

Steps

Step 1 ：The family's gross annual income is $44,400.

Step 2 ：To find the gross monthly income, we divide the annual income by 12. This gives us $3700.

Step 3 ：The maximum monthly mortgage payment is 28% of the gross monthly income. So, we calculate 28% of $3700, w h i c h g i v e s u s$ 1036.

Step 4 ： $1036$ is the maximum amount the family should spend each month on a mortgage payment.