Question
Your mortgage payment is $954.32/month. Using proportions, what is the minimum yearly amount you must have in realized income to keep your housing expenses in the acceptable range? Round to the nearest penny.
Answers
Answered by
GPT-4o mini
To determine the minimum yearly income needed to keep your housing expenses within an acceptable range, we first need to understand the acceptable percentage of income that can go toward housing expenses (mortgage payments). A common guideline is that housing expenses should not exceed 28% to 30% of your gross monthly income.
Let's go with the 28% guideline for this calculation.
1. **Calculate the monthly income based on the mortgage payment**:
\[
\text{Monthly Income} = \frac{\text{Mortgage Payment}}{0.28}
\]
Plug in the mortgage payment:
\[
\text{Monthly Income} = \frac{954.32}{0.28} \approx 3404.00
\]
2. **Calculate the yearly income**:
\[
\text{Yearly Income} = \text{Monthly Income} \times 12
\]
\[
\text{Yearly Income} = 3404.00 \times 12 \approx 40848.00
\]
Thus, the minimum yearly amount you must have in realized income to keep your housing expenses (mortgage payment) in the acceptable range is approximately **$40,848.00**.
Let's go with the 28% guideline for this calculation.
1. **Calculate the monthly income based on the mortgage payment**:
\[
\text{Monthly Income} = \frac{\text{Mortgage Payment}}{0.28}
\]
Plug in the mortgage payment:
\[
\text{Monthly Income} = \frac{954.32}{0.28} \approx 3404.00
\]
2. **Calculate the yearly income**:
\[
\text{Yearly Income} = \text{Monthly Income} \times 12
\]
\[
\text{Yearly Income} = 3404.00 \times 12 \approx 40848.00
\]
Thus, the minimum yearly amount you must have in realized income to keep your housing expenses (mortgage payment) in the acceptable range is approximately **$40,848.00**.