Finance
A Maine borrower has a gross monthly income of $5,000. Under conventional lending guidelines, what is the maximum allowable monthly housing payment (front-end ratio at 28%)?
A$1,000
B$1,400✓ Correct
C$1,500
D$2,000
Explanation
Maximum housing payment = $5,000 x 28% = $1,400. To solve this, multiply the relevant values: $5,000 at 28%..
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