Given that your monthly expenses for the house that you want to purchase totals \( \$ 1,562.30 \) (this includes the house payment, annual taxes, and the annual cost for home owners insurance) and your gross annual salary is \( \$ 66,955.71 \), determine if you qualify for the purchase of the new home. If yes, what percent do you qualify by? \( \begin{array}{ll}\text { a. No; } 29.2 \% & \text { c. No; } 30 \% \\ \text { b. Yes: } 28 \% & \text { d. Yes; } 26.4 \%\end{array} \)

To determine if you qualify for the purchase of the new home, we need to calculate the percentage of your gross monthly income that your monthly expenses represent. 1. **Calculate your gross monthly income:** \[ \text{Gross Annual Salary} = \$66,955.71 \] \[ \text{Gross Monthly Income} = \frac{\text{Gross Annual Salary}}{12} = \frac{66,955.71}{12} \approx 5,579.64 \] 2. **Calculate the percentage of your gross monthly income that your monthly expenses represent:** \[ \text{Monthly Expenses} = \$1,562.30 \] \[ \text{Percentage of Income} = \left( \frac{\text{Monthly Expenses}}{\text{Gross Monthly Income}} \right) \times 100 \] \[ \text{Percentage of Income} = \left( \frac{1,562.30}{5,579.64} \right) \times 100 \approx 28.0\% \] 3. **Determine if you qualify:** Typically, lenders prefer that your housing expenses do not exceed 28% to 30% of your gross monthly income. Since your percentage is approximately 28.0%, you qualify for the purchase of the new home. 4. **Conclusion:** You qualify for the purchase of the new home, and the percentage you qualify by is approximately 28%. Thus, the answer is: **b. Yes: 28%**