Finance
A Massachusetts lender requires that a borrower's total debt service ratio (DTI) not exceed 43%. The borrower earns $7,500/month gross. The maximum total monthly debt payments allowed are:
A$2,250
B$3,225✓ Correct
C$3,750
D$3,000
Explanation
Maximum total debt payments = $7,500 × 43% = $3,225. This includes the proposed mortgage payment plus all other monthly debt obligations (car loans, student loans, credit cards, etc.).
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