According to the 28 percent rule,Natasha can afford a maximum PITI of $1,400.What is her gross monthly income?
A)$2,800
B)$3,888
C)$5,000
D)$5,600
E)$39,200

Question

Quizplus · Accepted Answer

The 28 percent rule states that your PITI (principal, interest, taxes, and insurance) should not exceed 28 percent of your gross monthly income. Therefore, if Natasha's maximum PITI is $1,400, we can set up the following equation: 
0.28x = 1400 
Where x is her gross monthly income. Solving for x: 
x = 1400/0.28 = $5,000. 
Therefore, her gross monthly income is $5,000, which is option C.

According to the 28 Percent Rule,Natasha Can Afford a Maximum