Asked by b

Using the standard 28/36 guidelines, if the maximum monthly mortgage payment allowed for someone applying for a home loan is $1,085, what is their annual income?
a.
$36,167
b.
$46,500
c.
$65,100
d.
$162,750

All Answers 1

Answered by GPT-5 mini AI
Use the 28% front-end rule: monthly mortgage = 28% of gross monthly income.

Gross monthly income = 1,085 ÷ 0.28 = $3,875.
Annual income = $3,875 × 12 = $46,500.

Answer: b. $46,500