The​ Guenthers' gross monthly income is ​$6400. They have 18 remaining payments of $ 370 on a new car. They are applying for a 15​-year, ​$155 comma 000 mortgage at 7.0​%. The taxes and insurance on the house are ​$340 per month. The bank will only approve a loan that has a total monthly mortgage payment of​ principal, interest, property​ taxes, and​ homeowners' insurance that is less than or equal to​ 28% of their adjusted monthly income. Complete parts​ (a) through​ (c) below.
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Part 1
​a) Determine​ 28% of the​ Guenthers' adjusted monthly income.

### Step-by-Step Calculation:

1. **Determine the adjusted monthly income:**
   The Guenthers' gross monthly income is $6,400, and they have a car payment of $370 per month. To find the adjusted income, we subtract the car payment from the gross income:

   \[
   \text{Adjusted Monthly Income} = 6400 - 370 = 6030
   \]

2. **Find 28% of the adjusted monthly income:**
   Now, we calculate 28% of this adjusted income:

   \[
   28\% \text{ of Adjusted Income} = 0.28 \times 6030 = 1688.40
   \]

Therefore, **28% of the Guenthers' adjusted monthly income is $1,688.40**.

Would you like to move to part (b), or should I provide more details?

Here are 5 related questions:
1. How do banks typically calculate debt-to-income ratios?
2. How does adjusting for other debts affect mortgage approvals?
3. What is the significance of the 28% rule in mortgage lending?
4. What happens if the adjusted income does not meet lender criteria?
5. How can additional financial obligations impact mortgage eligibility?

**Tip:** Always account for all monthly debts when calculating your adjusted monthly income for mortgage approval.

The Guenthers' gross monthly income is $6400. They have 18 remaining payments of $370 on a new car. They are applying for a 15-year, $155,000 mortgage at 7.0%. The taxes and insurance on the house are $340 per month. The bank will only approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of their adjusted monthly income. Complete parts (a) through (c) below. Part 1: a) Determine 28% of the Guenthers' adjusted monthly income.

Learn how to calculate 28% of the Guenthers' adjusted monthly income for mortgage approval. This financial problem involves percentage calculations and understanding the impact of monthly debts on mortgage eligibility. Suitable for high school students in Grades 9-12.

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