If your annual gross income is $62,000 and you have one monthly car payment of $335 and a monthly student loan payment of $225, what is the maximum house payment you can afford. consider a standard 28% front-end ratio and a 36% back-end ratio. also, to complete your calculation, the annual property tax will be $3,600 and the annual homeowner's premium will be $360.

The maximum house payment than can be afforded = $970

Step-by-step explanation:

The front-end ratio = 28%

The front end ratio limits housing-related expenses to 28% × $62,000

                                                                                         = 0.28 × $62,000

                                                                                         = $17,360 per year

Annual property tax = $3600

Annual homeowner's premium = $360

So the amount that can be spent on mortgage debt = expense limit - annual premium of homeowner - annual property tax

⇒ Amount that can be spent on mortgage = 17360 - 3600 - 360

                                                                       = $13400 per year

The back-end ratio limits the total of all debt to 36% × $62,000

                                                                              = 0.36 × 62,000

                                                                              = $22,320 per year

To find allowable additional debt : Subtract the payments which are already made

⇒ Allowable payment amount = 22320 - 12 × (335 +225) - 3600 - 360

                                                   = $11,640

The back end ratio limit is lower than the front end ratio limit, So the monthly house payment will be limited by the back end ratio.

region b will make the inequalities y < 2x + 1 and y > -x - 2 true ⇒ answer a

step-by-step explanation:

* lets study the graph and the inequality to solve the question

- the inequality y > -x - 2

∵ the form of the inequality is y > mx + c , m is the slope of the line

  and c is the y-intercept (the line intersect y-axis at point (0 , c)

∴ c = -2 that means the line intersect the y-axis at point (0 , -2)

∵ the sign of the inequality is >

∴ we shad the part over the line

  region a and b

- the inequality y < 2x + 1

∵ the form of the inequality is y > mx + c , m is the slope of the line

  and c is the y-intercept (the line intersect y-axis at point (0 , c)

∴ c = 1 that means the line intersect the y-axis at point (0 , 1)

∵ the sign of the inequality is <

∴ we shad the part under the line

  region b and c

∵ the common region between the two lines is region b

∴ region b will make the inequalities y < 2x + 1 and y > -x - 2 true