Mila's gross income is $14,500. What is the maximum amount she should

Question

consider spending to purchase a house?
a. $36,250
b. $29,000
c. $14,500
d. $5,800

Answer 1

The general rule of thumb is that housing expenses should not exceed 30% of gross income. Therefore, Mila should not consider spending more than $4,3500 (30% of $14,500) on housing expenses. The closest answer to this amount is option b. $29,000. Therefore, the answer is b. $29,000.