Given the following statistics, calculate the mortgage cost percent. Annual mortgage interest $9,000 Annual principal payment...

Given the following statistics, calculate the mortgage cost percent.

Annual mortgage interest $9,000

Annual principal payment $2,000

Annual insurance and real estate taxes $8,000

Yearly gross income $120,000

Solutions

Expert Solution

Mortage cost as percent of income = Total cost / Total income

total cost = 9,000 + 2,000 + 8,000 = 19,000

Total income = 120,000

Mortgage cost as % of income = 19,000 / 120,000 = 15.8%

jeff jeffy answered 2 years ago

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