Question

14. The maximum amount a homeowner should spend on housing is

Answer 1

Answer:

28%

Explanation:

Although there are sources that says 30% of gross income can be spent on housing, the most reliable amount that can be spent (according to other sources) is 28%.

Take for instance, you earn $5000 monthly, the maximum that you can spend on housing is:

$Max = 28\% * \ 5000$

Using a calculator, we have:

$Max = \ 1400$

The maximum that can be spent on a monthly gross income of $5000 is $1400