Real Estate Math
A Missouri buyer qualifies for a loan based on a maximum 28% housing expense ratio. Monthly gross income is $6,200. Maximum PITI payment is:
A$1,548
B$1,736✓ Correct
C$1,860
D$2,170
Explanation
Maximum PITI = Monthly Gross Income x Maximum Ratio = $6,200 x 0.28 = $1,736. To solve this, multiply the relevant values: $6,200 at 28%.. The correct answer is $1,736.. This is a common calculation on the Missouri real estate exam.
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