Solution:
As 28/36 guidelines states that 28% of your gross monthly income should be spent on housing finances and 36% of your total monthly income can be considered as an income allowable for Debt.
Let Total gross monthly income = $ x
Amount given as Debt = $ 1085
So, 36 % of x = $ 1085
[tex]\frac{36x}{100}=1085\\\\x=\frac{1085 \times100}{36}=3013.88[/tex]
Annual income=12 × 3013.88=36166.666=$36,167(approx)→Option (A)
The correct answer is B) $46,500.
I just did the topic test on Edge and got it right :)
