Origination ActivitiesQuestion 277 of 400
An underwriter must calculate qualifying income for a borrower paid $22/hour working a standard 40-hour week. What is the correct gross monthly income (using 2,080 hours annually)?
a.$1,760
b.$2,933
c.$3,813
d.$5,280
Explanation
Annual income is $22 times 2,080 hours, or $45,760, and gross monthly income is $45,760 divided by 12, which equals about $3,813. Multiplying hourly pay by 40 gives only a weekly figure, so the annual-then-divide method yields the correct monthly income.
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