Final answer:
According to the 20/10 Rule, Greg's total allowable non-mortgage borrowing should not exceed 20% of his annual take-home pay, resulting in a maximum amount of $4,800.
Step-by-step explanation:
Using the 20/10 Rule of thumb for personal finance, Greg's total borrowing should not exceed 20% of his annual take-home pay and payments on debt should not exceed 10% of the monthly take-home pay. In Greg's case, his annual take-home pay is $24,000. Thus:
- 20% of annual income for total borrowing: 0.20 x $24,000 = $4,800
Therefore, according to the 20/10 Rule, Greg's total borrowing (excluding mortgage loans) should not exceed $4,800.