Eric has saved $18,300 toward a down payment on a house. he makes a salary of $59,750 a year. what is the maximum eric could spend for a house?

question options:

a)$137,800
b)$119,500
c)$101,200
d)$90,500

The answer should be B) $119,500. The benchmark is his annual salary, and this amount is twice his annual salary, but not thrice larger. For mortgages, your debt should generally not be larger than three times your gross annual salary.