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Determining which answer cannot be true based on the information given. Practice Test
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Q1
Many home renters buy their first homes believing that it is clearly more profitable to make mortgage payments than to pay rent. Other costs, such as maintenance, property taxes, and insurance must be factored in, however. All housing expenses together total at least 40% of most homeowners' income. It is not financially reasonable to spend any more than 30% of income on housing expenses.
If the information is correct, which of the following cannot be true?
Many home renters buy their first homes believing that it is clearly more profitable to make mortgage payments than to pay rent. Other costs, such as maintenance, property taxes, and insurance must be factored in, however. All housing expenses together total at least 40% of most homeowners' income. It is not financially reasonable to spend any more than 30% of income on housing expenses.
If the information is correct, which of the following cannot be true?