Real Estate Math
A Maine homebuyer's annual gross income is $72,000. Using a 28% front-end ratio, the maximum monthly housing payment (PITI) is:
A$1,400
B$1,680✓ Correct
C$2,016
D$2,520
Explanation
Maximum monthly housing payment = $72,000 × 28% ÷ 12 = $20,160 ÷ 12 = $1,680. To solve this, multiply the relevant values: $72,000 at 28%.. The correct answer is $1,680.. This is a common calculation on the Maine real estate exam.
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