Question

Task 4

Lily makes a net annual income of


$52,500 and has saved enough


money for a 20% down payment on


a $230,000 house. She estimates her


mortgage will be $1,200 per month.


Can she afford this mortgage?


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>


gifts &


Nοε δυσπου


entertainment


12%


clothes 5% Sponding Guidelines


% of not incomes)


savings


10%


1: What is Lily's net monthly income


2: How much is her down payment


3: Not considering the down payment, is a


$1,200 monthly mortgage payment within


the Spending Guideline for housing?


transportation


11%


food 20%


1: What is Lily's net monthly income?

Answer 1

Lily's net monthly income is $4,375

Explanation:

To calculate the monthly income, we need to divide the annual income by 12.

$52,500 ÷ 12 = $4,375.