2
QuizMultiple Choice

Qualifying for a Home Loan

Question 2 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $73,025?

Answer
A
$2,190.75
B
$2,044.70
C
$1,703.92
D
$1,217.08

Explanation

The 28% guideline limits the monthly mortgage payment to 28% of gross monthly income. Divide the $73,025 annual salary by 12 to get about $6,085.42 per month, then multiply by 0.28: $6,085.42 × 0.28 = $1,703.92. So the maximum payment is $1,703.92, choice C.

AI-written and checked against the verified answer.

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