Question

Your mortgage payment is 954.32/month. Using proportions, what is the minimum what is the yearly amount you have in realized income to keep your housing expense the acceptable range?

Answer 1

Answer: $40,899.43

Step-by-step explanation: I just took it on a test.

Answer 2

$40,899.43

Explanation:

Assume an acceptable mortgage repayment plan of 27% of pretax monthly income.

Annual realized Income is given by the product of the monthly mortgage payment by 12 months divided by the acceptable rate.

`(Mortgage \Rate)/(Acceptable \ Rate\%)*12\\=(954.32)/(0.27)*12\\=$42,414.22`

*Note that acceptable rate/proportion is relative and depends on the individual.