Question

A common rule is that housing expenses plus other debt payments should not be more than 36% of your monthly income. Your monthly income is $4,300, and you have student loan payments of $321 per month. How much can you spend on housing?

Answer 1

Common rule of your salary
=> housing expenses + other debt payment should not be more than 36% of you monthly income.
=> 4 300 dollars is you monthly income.
Let's solve the 36% of it
=> 4300 * .36 = 1548
=> 1548 - 321 for you student loan = 1227 dollars - the housing expenses.

Answer 2

We can spend $1,227 on housing.

Explanation:

Given: A common rule is that housing expenses plus other debt payments should not be more than 36% of your monthly income.

Your monthly income is $4,300.

It means we can spend 36% of $4,300 on housing and other debts.

So 36% of $4,300 = 0.36 times $4,300 = $1,548.

So we can spend $1,548 on housing and other debts. It says you have student loan payments of $321 per month.

Housing expenses = $1,548 - $321 = $1,227.

Hence, we can spend $1,227 on housing.