Question

Suppose a family has a gross annual income of ​$36,000, What is the maximum amount the family should spend each month on a mortgage​ payment?

Answer 1

Explanation:

Ok, if they make $36,000 every year, that means the maximum they can spend is $36,000.

If the mortgage is a monthly payment, and there are 12 months in a year, that means we will split the $36,000 over 12 different payments. To do that we will divide the 36,000 by 12

36,000 / 12 = $3,000

That means the most they can spend on mortgage is $3,000 per month.