Advice from most financial advisers states to spend no more than 28% of one’s gross monthly income for one’s mortgage payment, and to spend no more than 36% of one’s gross monthly income for one’s total monthly debt. Suppose a family has a gods annual income of $44,000. a. What is the maximum amount the family should spend each month in a mortgage payment?
b. What is the maximum amount the family should spend each month for total credit obligations?
c. If the family’s monthly mortgage payment is 60% of the maximum they can afford, what is the maximum amount the should spend each month for all other debt?