Finance
A borrower has a monthly gross income of $6,500. A lender's housing expense ratio guideline is 28%. What is the maximum allowable monthly housing payment?
A$1,560
B$1,820✓ Correct
C$1,950
D$2,080
Explanation
Maximum housing payment = $6,500 × 0.28 = $1,820. To solve this, multiply the relevant values: $6,500 at 28%.. The correct answer is $1,820.. This is a common calculation on the Montana real estate exam.
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