document.write( "Question 446528: Car payments. As a rule of thumb, debt payments (other than mortgages) should be less than 8% of a consumer’s monthly gross income. Oliver makes $54,000 a year and has a $100 student-loan payment every month. What size car payment can he afford? \n" ); document.write( "

Algebra.Com's Answer #307519 by nerdybill(7384) $\"\"$ $\"About$

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Car payments. As a rule of thumb, debt payments (other than mortgages) should be less than 8% of a consumer’s monthly gross income. Oliver makes $54,000 a year and has a $100 student-loan payment every month. What size car payment can he afford?
\n" ); document.write( "gross monthly = 54000/12 = $4500 per month
\n" ); document.write( "8% of that is:
\n" ); document.write( ".08*4500 = $360
\n" ); document.write( "subtracting the student-loan:
\n" ); document.write( "360-100=$260
\n" ); document.write( ".
\n" ); document.write( "Ans: he can afford $260 per month \n" ); document.write( "

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