document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1173050>Question 1173050</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The Jackson’s gross monthly income is $6500. They have 13 remaining payments of $320 on a new car and 6 remaining payments of $76 on a washer and dryer. The taxes and insurance on the house are $125 per month. What maximum monthly payment does the banks loan officer feel that the Jackson’s can afford?\r<BR>\n" );
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document.write( "$1820.00<BR>\n" );
document.write( "$1854.00<BR>\n" );
document.write( "$1709.12<BR>\n" );
document.write( "$1730.40 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #850758 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1959)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><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=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=850758\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Here's how to solve this problem:\r<BR>\n" );
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document.write( "**1. Calculate Total Monthly Debt:**\r<BR>\n" );
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document.write( "* Car payment: $320<BR>\n" );
document.write( "* Washer/dryer payment: $76<BR>\n" );
document.write( "* Taxes and insurance: $125<BR>\n" );
document.write( "* Total existing debt: $320 + $76 + $125 = $521\r<BR>\n" );
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document.write( "**2. Determine Maximum Allowable Debt:**\r<BR>\n" );
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document.write( "* A common guideline for a maximum debt-to-income ratio (DTI) is 36%.<BR>\n" );
document.write( "* Maximum allowable debt: $6500 * 0.36 = $2340\r<BR>\n" );
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document.write( "**3. Calculate Maximum Monthly Payment:**\r<BR>\n" );
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document.write( "* Maximum monthly payment: $2340 - $521 = $1819\r<BR>\n" );
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document.write( "**Answer:**\r<BR>\n" );
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document.write( "The closest answer is $1820.00<BR>\n" );
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