Finance
A Tennessee borrower has a gross monthly income of $5,500. The lender uses a 28% front-end ratio. What is the maximum monthly housing payment allowed?
A$1,540✓ Correct
B$1,375
C$1,650
D$1,210
Explanation
Maximum housing payment = $5,500 × 28% = $1,540. To solve this, multiply the relevant values: $5,500 at 28%.. The correct answer is $1,540.. This is a common calculation on the Tennessee real estate exam.
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