Question

how much of a car payment can he afford if his annuel income is 54,000 and he has a loan for 100 a month and it says your debt should not be more than 8% of gross income so first we need to figure his monthly income so we take his annual income of 54000 and devide it by 12 since there is 12 monthes in a year then we get his monthly income of 4500 then he has a 100 loan payment a month so we can subtract that so then his monthly income is 4400 and to figure what car payment he can aford we set up equation of (4400)(.08)=c being c for carpayment
then we get 352 is the amount of carpayment he ca

Answer 1

shouldn't it be
4500(.08) = c+100
for total debt to be 8% of gross income