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