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9 August, 09:39

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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  1. 9 August, 09:44
    0
    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
  2. 9 August, 10:04
    0
    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.
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