Finance
A buyer's gross monthly income is $7,500. The lender's maximum front-end DTI ratio is 28%. What is the maximum monthly housing payment allowed?
A$1,500
B$2,100✓ Correct
C$2,400
D$1,800
Explanation
Maximum housing payment = $7,500 × 28% = $7,500 × 0.28 = $2,100. To solve this, multiply the relevant values: $7,500 at 28%.. The correct answer is $2,100.. This is a common calculation on the Minnesota real estate exam.
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