debt Suppose a family has a gross annual income of $\$ 43,200$
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 fotal credit obligations?
c. If the family's monthly mortgage payment is $70 \%$ 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 $\$ 1008$
b. The maximum montly lolat credir obtgations should be 5
Answer
Final Answer: The maximum amount the family should spend each month on a mortgage payment is approximately \(\boxed{1008}\).
Step 1 ：The problem is asking for several calculations based on a family's gross annual income. We'll start with the first question, which is to calculate the maximum amount the family should spend each month on a mortgage payment.
Step 2 ：According to financial experts, a family should not spend more than 28% of their gross monthly income on a mortgage payment. So, we need to calculate 28% of the family's monthly income.
Step 3 ：To find the monthly income, we divide the annual income by 12. The annual income is \$43,200, so the monthly income is \(\frac{43200}{12} = \$3600\).
Step 4 ：Now, we calculate 28% of the monthly income to find the maximum monthly mortgage payment. This is \(0.28 \times 3600 = \$1008\).
Step 5 ：Final Answer: The maximum amount the family should spend each month on a mortgage payment is approximately \(\boxed{1008}\).
