jojobanana2015
Answered

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Felicity earns $39.990 per year in take-home pay. What is the most money a
housing expert would advise her to spend on a monthly mortgage payment?

A. $987.24
B. $3990.00
C. $833.13
D. $666.50

Sagot :

Samawati

Answer:

C. $833.13

Explanation:

Home experts advocate for the 28/36 rule. As per this rule, total household expenditure on debts,  including mortgages, should not exceed 36 % of monthly gross income. Monthly spending on mortgages should not exceed 28% of monthly income.

Felicity annual income = $39,990

Monthly income = $39,990/12

monthly income =$3,332.50

The maximum amount to be spent on mortgages

= 28% of $3,332.50

=28/100 x 3,332.50

=$933.1

Felicity should not spend more than $933.1 on the mortgage alone

From the options provided, $833.13 should be the recommended amount

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