Mrs. Alvarado gets a raise that increases their income to $6,500
a month. Their mortgage stays the same. What percent of their monthly income do they now spend on the mortgage?
Some things to know:
Mrs. Alvarado's income before the raise was 6,000 dollars. Also before their raise, they spent 23% of their income on mortgage. So if they got a raise upto 6,500 dollars, how much would they spend on mortgage? Also please show the work. Thank you. I appreciate it.
amount of mortgage before raise
= .23(6000) = 1380
after raise,
rate = 1380/6500 = .2123 or appr 21.2%
6,000 * 0.23 = $1,380 mortgage payment
100(6,500/1380) = ______%
Thank you! :)
To find out how much Mrs. Alvarado would spend on the mortgage after the raise, we can use the information that she spent 23% of her income on the mortgage before the raise.
Step 1: Calculate the amount of money she spent on the mortgage before the raise:
Mrs. Alvarado's income before the raise is $6,000, and 23% of $6,000 is:
(23/100) * 6000 = $1,380
So, Mrs. Alvarado spent $1,380 on the mortgage before the raise.
Step 2: Calculate the percentage of income spent on the mortgage after the raise:
After the raise, Mrs. Alvarado's income is $6,500.
To find out how much she would spend on the mortgage, we divide the amount spent on the mortgage before the raise ($1,380) by the new income ($6,500) and multiply by 100 to get the percentage:
(1380/6500) * 100 = 21.23%
Therefore, Mrs. Alvarado would spend approximately 21.23% of her monthly income on the mortgage after the raise.
If you have any further questions, feel free to ask.