Real Estate Math
A Hawaii buyer pays $6,000 per month for their housing. Their annual gross income is $180,000. What is the housing expense ratio?
AA. 33%
BB. 40%✓ Correct
CC. 28%
DD. 36%
Explanation
Monthly income = $180,000 / 12 = $15,000. Housing expense ratio = $6,000 / $15,000 = 40%. Using the values given ($6,000, $180,000), apply the appropriate formula.. The correct answer is B. 40%.. This is a common calculation on the Hawaii real estate exam.
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