A common rule is that housing plus other debt should not be more than 36% of your monthly income. Your monthly income is $4300 and you have student loan payments of $312 per month. How much can you spend on housing?

Question

Business

Heidi Riggs

25 May, 16:29

A common rule is that housing plus other debt should not be more than 36% of your monthly income. Your monthly income is $4300 and you have student loan payments of $312 per month. How much can you spend on housing?

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Answers (2)

Know the Answer?

Melody Haynes · Answer 1

Amount to be spent on housing = $1,236

Explanation:

The amount that can be spent on housing

let y represent the amount to be spent on housing

36% = (312 + y) / 4300

cross multiplying

1548 = 312 + y

1548 - 312 = y

1,236 = y

Amount to be spent on housing = $1,236

Big Nasty · Answer 2

The amount that can be spent on housing is $1,236 as shown below

Explanation:

Going strictly by the rule that cost of housing and other debt combined together should not be more than 36% of monthly income, the amount that can be spent on housing is 36% of monthly income less student loan payment of $312.

36% of monthly income (36%*$4300) $1,548

deduct student loan payment ($312)

Housing cost $1,236

All in all, the sum of $1,236 can be spent on housing, this means that one has to search for a decent accommodation whose monthly cost is the region of the amount budgeted.