Question

A common rule is that housing expenses plus other debt payments should not be more than 36% of your monthly income. Your monthly income is $4,300, and you have student loan payments of $321 per month. How much can you spend on housing?

Answer 1

Answer: c) $1,227 per month

Explanation:

I got it right

Answer 2

First we need to get the amount that is 36% of your monthly income

= 4300 * 0.36
= 1548

So we need to make sure that the housing expenses and other debt payments should not exceed on the amount of $1,548.00