document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1121303>Question 1121303</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Bill earns 60000 a year Betty earns 2400 per month how  much can Bill and Betty pay monthly for their mortgage payment if the lender uses a 28 percentage qualifying ratio </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #737122 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=737122\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> bill earns 60,000 a year.<BR>\n" );
document.write( "betty earns 2400 per month.\r<BR>\n" );
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document.write( "60,000 a year divided by 12 = 5000 a month.\r<BR>\n" );
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document.write( "together they earn 7400 a month.\r<BR>\n" );
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document.write( "if their monthly mortgage payment shouldn't be more than 28% of their monthly income, then they can afford a monthly mortgage payment of .28 * 7400 = 2072 per month.\r<BR>\n" );
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document.write( "the mortgage amount they can lend depends on the interest rate.\r<BR>\n" );
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document.write( "a payment of 2072 per month at 3% per year interest on a 30 years mortgage allows them to borrow $491,456.\r<BR>\n" );
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document.write( "at 4% per year, they can borrow $434,003.\r<BR>\n" );
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document.write( "at 5% per year, they can borrow $385,975.\r<BR>\n" );
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document.write( "in other words, the higher the interest rate, the less they can borrow with a fixed payment of $2,072 per month.\r<BR>\n" );
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document.write( "but that's more than you need to know, even though you might find it interesting.\r<BR>\n" );
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document.write( "all you need to know is that, given the maximum monthly mortgage payment is 28% of their monthly income, they can afford to pay up to $2,072 per month on the mortgage.\r<BR>\n" );
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