Finance
A Kentucky borrower has $4,200 monthly gross income and wants to know the maximum monthly mortgage payment under the conventional 28% front-end ratio:
A$980
B$1,176✓ Correct
C$1,050
D$1,260
Explanation
Maximum mortgage payment = Gross monthly income x Front-end ratio. $4,200 x 28% = $4,200 x 0.28 = $1,176.
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