Real Estate Math
A South Dakota buyer's monthly gross income is $8,500. Using a 36% back-end DTI ratio, what is the maximum total monthly debt payment allowed?
A$2,550
B$3,060✓ Correct
C$3,400
D$2,800
Explanation
Maximum debt = $8,500 × 36% = $8,500 × 0.36 = $3,060. To solve this, multiply the relevant values: $8,500 at 36%.. The correct answer is $3,060.. This is a common calculation on the South Dakota real estate exam.
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