Advice from most financial advisers states to spend no more than \( 28 \% \) of one's gross monthly income for one's mortgage payment, and to spend no more than \( 36 \% \) of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of \( \$ 45,600 \). a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is \( 70 \% \) of the maximum they can afford, what is the maximum amount they should spend each month for all other debt? a. The maximum monthly mortgage payment should be \( \$ \square \).

To find the maximum monthly mortgage payment, we start with the family's gross annual income of \( \$ 45,600 \). Dividing by 12 months gives us a gross monthly income of \( \$ 3,800 \). a. The maximum amount for a mortgage payment will be \( 28\% \) of this gross monthly income: \[ \text{Maximum mortgage payment} = 0.28 \times 3,800 = \$1,064. \] b. Next, the maximum amount for total monthly debt is \( 36\% \) of the gross monthly income: \[ \text{Maximum total debt payment} = 0.36 \times 3,800 = \$1,368. \] c. If the family's monthly mortgage payment is \( 70\% \) of the maximum they can afford: \[ \text{Monthly mortgage payment} = 0.70 \times 1,064 = \$744.80. \] Now, to find how much they can spend on all other debts, we subtract this from the maximum total debt obligation: \[ \text{Maximum amount for other debts} = 1,368 - 744.80 = \$623.20. \] So, the maximum monthly mortgage payment should be \( \$1,064 \).