Advice from most financial advisers states to spend no more than​ 28% of​ one's gross monthly income for​ one's mortgage​ payment, and to spend no more than​ 36% of​ one's gross monthly income for​ one's total monthly debt. Suppose a family has a gross annual income of ​$46,800. 

a. What is the maximum amount the family should spend each month on a mortgage​ payment?

b. What is the maximum amount the family should spend each month for total credit​ obligations?

c. If the​ family's monthly mortgage payment is 70% of the maximum they can​ afford, what is the maximum amount they should spend each month for all other​ debt?

We are given that the family has a gross annual income of $46,800, and we need to determine the maximum amounts they should spend on their mortgage and total credit obligations. We will also calculate the maximum amount they should spend on other debt if their mortgage payment is 70% of what they can afford.

### Step-by-step solution:

1. **Convert annual income to monthly income:**
   \[
   \text{Gross monthly income} = \frac{\$46,800}{12} = \$3,900
   \]

### a. Maximum monthly mortgage payment:
The advice is to spend no more than 28% of gross monthly income on the mortgage payment.

\[
\text{Maximum mortgage payment} = 0.28 \times 3,900 = \$1,092
\]

### b. Maximum total monthly debt obligations:
The advice is also to spend no more than 36% of gross monthly income on total debt obligations, which includes the mortgage and all other debt (e.g., credit card payments, car loans, etc.).

\[
\text{Maximum total debt} = 0.36 \times 3,900 = \$1,404
\]

### c. Maximum amount for all other debt if the mortgage payment is 70% of the maximum:
We know that the family's mortgage payment is 70% of the maximum they can afford for a mortgage. So, the actual mortgage payment is:

\[
\text{Actual mortgage payment} = 0.70 \times 1,092 = \$764.40
\]

The maximum amount they should spend on all other debt would be the difference between the total maximum debt and the actual mortgage payment:

\[
\text{Maximum for all other debt} = 1,404 - 764.40 = \$639.60
\]

### Final answers:
a. The maximum monthly mortgage payment the family should spend is **$1,092**.

b. The maximum monthly amount for total credit obligations is **$1,404**.

c. The maximum monthly amount for all other debt is **$639.60**.

Would you like further details or have any questions?

Here are 5 related questions for deeper understanding:
1. How would the maximum mortgage payment change if the family's income increased?
2. What percentage of income is left for other expenses after accounting for debt obligations?
3. How do interest rates affect the maximum mortgage a family can afford?
4. What happens if a family's total debt exceeds 36% of their income?
5. How can budgeting software help a family track their debt obligations?

**Tip:** Tracking monthly expenses regularly ensures you stay within your budget and avoid debt accumulation.

Advice from most financial advisers states to spend no more than​ 28% of​ one's gross monthly income for​ one's mortgage​ payment, and to spend no more than​ 36% of​ one's gross monthly income for​ one's total monthly debt. Suppose a family has a gross annual income of ​$46,800. a. What is the maximum amount the family should spend each month on a mortgage​ payment? b. What is the maximum amount the family should spend each month for total credit​ obligations? c. If the​ family's monthly mortgage payment is 70% of the maximum they can​ afford, what is the maximum amount they should spend each month for all other​ debt?

Learn how to calculate the maximum monthly mortgage and total credit obligations for a family with a gross annual income of $46,800. This problem involves percentage calculations and basic algebra, ideal for students in Grades 9-11.

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