Real Estate Math
An Indiana lender approves a buyer at a maximum 43% back-end DTI. The buyer's gross monthly income is $7,500. What is the maximum total monthly debt allowed?
A$2,875
B$3,000
C$3,225✓ Correct
D$3,500
Explanation
Maximum monthly debt = $7,500 × 43% = $7,500 × 0.43 = $3,225. To solve this, multiply the relevant values: $7,500 at 43%.. The correct answer is $3,225.. This is a common calculation on the Indiana real estate exam.
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