Question

a realtor found a home for a couple that will require a monthly loan payment of $1330. if the lender insists that the buyer’s monthly payment not exceed 34% of the buyer’s monthly income, find the minimum monthly income required by the lender. simplify your answer. the minimum monthly income required by the lender is $ (round to the nearest dollar as needed.)

Explanation:

Step1: Define the relationship

Let \( I \) be the monthly income. The loan payment (\( \$1330 \)) is at most 34% of \( I \), so \( 1330 \leq 0.34I \).

Step2: Solve for \( I \)

To find \( I \), divide both sides by \( 0.34 \): \( I \geq \frac{1330}{0.34} \).

Calculate \( \frac{1330}{0.34} \approx 3911.76 \). Rounding to the nearest dollar gives \( 3912 \).

Answer:

\( 3912 \)