Real Estate Math
A lender requires a borrower to maintain a debt-to-income ratio of no more than 43%. If the borrower's gross monthly income is $6,500, what is the maximum allowable total monthly debt payment?
A$2,395
B$2,595
C$2,795✓ Correct
D$2,995
Explanation
Maximum monthly debt = Gross Monthly Income × DTI limit. $6,500 × 43% = $6,500 × 0.
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