Question

Larry has saved $18,500 toward a down payment on a house. If he makes $3,890 a month , how much can he afford to spend on house?

A. 100,000
B. 93,369
C. 111,860
D. 65,180

Answer 1

Answer: Option 'D is correct.

Explanation:

Since we have given that

Amount he saved toward a down payment on a house = $18500

Amount he makes per month = $3890

Amount he makes in a year would be

`3890* 12=\$46680`

So, Amount he can afford to spend on house is given by

`\$46,680+\$18,500\\\\=\$65,180`

Hence, Option 'D is correct.