Determine the maximum monthly payment for a house (to the nearest dollar), if gross monthly income is $3,300 and current monthly payments for bills total $320.
A) $1,188
B) $983
C) $1,073
D) $2,980
E) $9,900

Question

Quizplus · Accepted Answer

To determine the maximum monthly payment for a house, the general rule is that the total monthly debt payments (including the house payment) should not exceed 43% of the gross monthly income.

First, we need to calculate the maximum amount for the debt payments by multiplying the gross monthly income by 43%:

$3,300 x 0.43 = $1,419

Then, we need to subtract the current monthly payments for bills:

$1,419 - $320 = $1,099

Therefore, the maximum monthly payment for a house is $1,099, which is closest to option C, $1,073.

Determine the Maximum Monthly Payment for a House (To the Nearest