Question

Tom is 45 and pays $2042 on his mortgage each month while his total take home pay is $5950 per month. The national average for those aged 35-64 on housing costs is 35% of income compute the percent of toms income spent on housing. Is this more or less than the national average

Answer 1

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First, you divide 2042/5950 which is about 0.4036, then you move the decimal 2 spaces to the right which is about 40.4, which means that 40% of Tom's income is his mortgage, higher than the average

Answer 2

Tom pays 34.32% which is less than 35%.

Explanation:

Tom's total take home pay per month is = $5950

The national average for those aged 35-64 on housing costs is 35% of income.

Given is that tom is 45 years and pays $2042 on his mortgage each month.

So, he pays
`(2042)/(5950) *100=34.32`% of his monthly income.

This is slightly lower than the national average of 35%.