Real Estate Math
A NC buyer's annual income is $85,000. Using a 28% front-end housing ratio, the maximum monthly PITI payment would be:
A$1,700
B$1,983✓ Correct
C$2,125
D$1,650
Explanation
Monthly income = $85,000 / 12 = $7,083. Maximum PITI = $7,083 x 0.28 = $1,983. To solve this, multiply the relevant values: $85,000 at 28%.. The correct answer is $1,983.. This is a common calculation on the North Carolina real estate exam.
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