Finance
A North Dakota borrower's monthly gross income is $5,000. The lender allows a maximum housing expense ratio of 28%. What is the maximum monthly housing payment?
A$1,200
B$1,400✓ Correct
C$1,600
D$2,000
Explanation
Maximum housing payment = $5,000 × 28% = $5,000 × 0.28 = $1,400. To solve this, multiply the relevant values: $5,000 at 28%.. The correct answer is $1,400.. This is a common calculation on the North Dakota real estate exam.
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