Question

14. The maximum amount a homeowner should spend on housing is

percent of his or her income.
Amswer

Answer 1

28%

Step-by-step explanation:

Although there are sources that says 30% of gross income can be spent on housing, the most reliable amount that can be spent (according to other sources) is 28%.

Take for instance, you earn $5000 monthly, the maximum that you can spend on housing is:

`Max = 28\% * \$5000`

Using a calculator, we have:

`Max = \$1400`

The maximum that can be spent on a monthly gross income of $5000 is $1400