Real Estate Math

A buyer's monthly gross income is $7,500. The front-end (housing) ratio limit is 28%. What is the maximum monthly PITI payment?

A$1,750
B$2,100✓ Correct
C$2,500
D$2,850

Explanation

Maximum PITI = 28% × $7,500 = 0.28 × $7,500 = $2,100.

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