Barb and Bob want to purchase a new home but don't know how much mortgage they can qualify for. The lender requires that the total installment of loan payments does not exceed 35% of the monthly income. Based on Barb and Bob's financial data given below, what is the maximum monthly mortgage payment for which they can qualify?
A)$1,400
B)$1,208
C)$1,502
D)$850
E)$500

Question

Barb and Bob want to purchase a new home but don't know how much mortgage they can qualify for. The lender requires that the total installment of loan payments does not exceed 35% of the monthly income. Based on Barb and Bob's financial data given below, what is the maximum monthly mortgage payment for which they can qualify? 
A)$1,400 
B)$1,208 
C)$1,502 
D)$850 
E)$500

Quizplus · Accepted Answer

The Answer of Barb and Bob want to purchase a new home but don't know how much mortgage they can qualify for. The lender requires that the total installment of loan payments does not exceed 35% of the monthly income. Based on Barb and Bob's financial data given below, what is the maximum monthly mortgage payment for which they can qualify? 
A)$1,400 
B)$1,208 
C)$1,502 
D)$850 
E)$500

Barb and Bob Want to Purchase a New Home but Don't