Real Estate Math
Using the 28% front-end ratio, what is the maximum monthly housing payment for a buyer earning $6,500/month gross income?
A$1,625
B$1,820✓ Correct
C$1,950
D$2,275
Explanation
Maximum housing payment = $6,500 × 28% = $1,820 per month. To solve this, multiply the relevant values: $6,500 at 28%.. The correct answer is $1,820.. This is a common calculation on the Utah real estate exam.
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