Question

A realtor found a home for a couple that will require a monthly loan payment of $1460. If the lender insists that the buyer's monthly payment not exceed 28% of the buyer's monthly income

find the minimum monthly income required by the lender. Simply your answer.

Answer 1

The minimum monthly income required by the lender is $5214.30

Explanation:

Here, we want to calculate the minimum monthly income required by the lender

From the question, we have that the monthly payment must not exceed 28% of the buyer’s monthly income

So in this case, let the monthly income be x

So therefore;

28% of x = 1460

Thus;

28/100 * x = 1460

28x = 100 * 1460

x = (100 * 1460)/28

x = 5214.30