Finance
A borrower in North Carolina has a gross monthly income of $5,500 and monthly debts of $800. What is the maximum monthly housing payment allowed under a 28% front-end DTI ratio?
A$1,100
B$1,320
C$1,540✓ Correct
D$1,760
Explanation
$5,500 x 28% = $1,540 maximum monthly housing payment under the front-end ratio. To solve this, multiply the relevant values: $5,500 and $800 at 28%..
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