Suppose Your Gross Monthly Income Is $6,500 and Your Current

Suppose your gross monthly income is $6,500 and your current monthly payments are $525. If the bank will allow you to pay up to 38% of your gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 25-year mortgage is 8.65%? ​

A) $278,588.99
B) $281,481.35
C) $275,178.79
D) $278,465.79
E) $278,454.79