Suppose a prospective home buyer has monthly income of $6,000 per month. The FRM amount is $300,000 at 5.0% for 30 years and the house price is $375,000. Taxes and insurance are expected to be about $3,000 per year. If the maximum allowable mortgage debt ratio is 33%, can the home buyer qualify for the loan?

Select one:

a. Yes, because $1,860.46 is less than 33% of $6,000

b.

No, because $4,610.46 is more than 33% of $6,000

c. No, because $55,325 is greater than 33% of $72,000

d. Yes, because $1,610.46 is less than 33% of $,6000