Final answer:
Jonathan's lender will decide how much he is eligible to borrow based on his gross income, but will test whether he can make his payments based on his net income.
Step-by-step explanation:
The subject of this question is Business. When Jonathan is applying for a home loan, his lender will decide how much he is eligible to borrow based on his gross income. However, the lender will also test whether he can make his payments based on his net income. Jonathan's lender will decide how much he is eligible to borrow based on his gross income, which is his income before taxes and other deductions. However, the lender will test whether he can make his payments based on his net income, which is his income after taxes and deductions. The correct answer to the student's question is b. gross; net.
Gross income refers to the total amount of income earned before any deductions, while net income is the amount of income left after deducting taxes and other deductions. Jonathan's lender will decide how much he is eligible to borrow based on his gross income, which is his income before taxes and other deductions. However, the lender will test whether he can make his payments based on his net income, which is his income after taxes and deductions. The correct answer to the student's question is b. gross; net.