Carl’s house payment is $2,574 per month and his car payment is $871 per month. If Carl's take-home pay is $5,200 per month, what percentage does Carl spend on his home? (Enter your answer as a percent rounded to 1 decimal place.)
Carl’s house payment is $2,574 per month and his car payment is $871 per month. If Carl's take-home pay is $5,200 per month, what percentage does Carl spend on his home? (Enter your answer as a percent rounded to 1 decimal place.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Carl’s house payment is $2,574 per month and his car payment is $871 per month. If Carl's take-home pay is $5,200 per month, what percentage does Carl spend on his home? (Enter your answer as a percent rounded to 1 decimal place.)
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Step 1: Introduction
House Payment to income ratio is the ratio which calculates the amount spend from your monthly income towards your home loan. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.
The formula to calculate House Payment to income ratio:
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