SOLUTION: 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 stude
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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? Answer by nerdybill(7384) (Show Source):
You can put this solution on YOUR website! 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?
gross monthly = 54000/12 = $4500 per month
8% of that is:
.08*4500 = $360
subtracting the student-loan:
360-100=$260
.
Ans: he can afford $260 per month
