Real Estate Math
A Tennessee lender requires a maximum 28% housing ratio. A borrower's gross monthly income is $6,500. What is the maximum monthly PITI payment?
A$1,625
B$1,820✓ Correct
C$1,950
D$1,560
Explanation
Maximum PITI = $6,500 × 28% = $1,820. To solve this, multiply the relevant values: $6,500 at 28%.. The correct answer is $1,820.. This is a common calculation on the Tennessee real estate exam.
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