Answer:
Option B. house B; monthly payment of $1,550.89 is the correct answer.
Step-by-step explanation:
In order to calculate the highest payment Pete can afford we have to subtract his expenses from his housing budget.
Given
Total housing budget = $2250
Monthly costs = $215.75
Utilities = $143.50
Taxes = $273
First all expenses can be added together to subtract from the housing budget.
So
Now the total monthly cost will be subtracted from housing budget.
Hence, he saves $1617.75 for monthly payment.
Looking at the options, C and D will be ruled out as both the quantities are greater than 1617.75
Option A and B both are smaller than 1617.75 but as $1,550.89>$1,327.18, Option B is the highest monthly payment Pete can afford.
Hence,
Option B. house B; monthly payment of $1,550.89 is the correct answer.