Finance
A Rhode Island borrower's PITI payment is $2,400/month. The lender requires that PITI not exceed 28% of gross monthly income. What minimum monthly income is required?
A$7,200
B$8,571✓ Correct
C$8,100
D$6,857
Explanation
Minimum monthly income = PITI / 0.28 = $2,400 / 0.28 = $8,571. To solve this, multiply the relevant values: $2,400 at 28%.. The correct answer is $8,571.. This is a common calculation on the Rhode Island real estate exam.
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