Answer:
$40,899.43
Step-by-step explanation:
Assume an acceptable mortgage repayment plan of 27% of pretax monthly income.
Annual realized Income is given by the product of the monthly mortgage payment by 12 months divided by the acceptable rate.
[tex]\frac{Mortgage \Rate}{Acceptable \ Rate\%}*12\\=\frac{954.32}{0.27}*12\\=$42,414.22[/tex]
*Note that acceptable rate/proportion is relative and depends on the individual.
