using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual…

using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $73,025?\na. $2,190.75\nb. $2,044.70\nc. $1,703.92\nd. $1,217.08\nplease select the best answer from the choices provided\na\nb\nc\nd

using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $73,025?\na. $2,190.75\nb. $2,044.70\nc. $1,703.92\nd. $1,217.08\nplease select the best answer from the choices provided\na\nb\nc\nd

Answer

Explanation:

Step1: Calculate monthly income

Monthly income = Annual income / 12. So, $\frac{73025}{12}\approx6085.42$.

Step2: Apply 28% rule

The 28/36 guidelines state that housing - related expenses (including mortgage payment) should be at most 28% of monthly income. Maximum mortgage payment = Monthly income×0.28. So, $6085.42\times0.28 = 1703.92$.

Answer:

C. $1,703.92$