Many home renters buy their first homes believing that it is cle

Question

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?

A. The combination of property taxes, insurance, and home maintenance costs is greater than mortgage payments for a minority of homeowners

B. A minority of homeowners have reasonable housing expenses

C. A majority of renters pay an unreasonable amount for housing expenses

D. A majority of homeowners have unreasonable housing expenses

E. A minority of homeowners have unreasonable housing expenses

AshutoshB · Answer

IMO Answer is :B

A: we can't deduce this from the given information, hence  out of scope

B: This is in line with the argument given,  so this is true

C: Out of scope: Rente payers are not at the issue of the argument, hence  we cant deduce

D:  In line with the argument : "  at least 40% of most homeowners' income. It is not financially reasonable to spend any more 
 scenario than 30% of income "

E: This scenario cant be true from the above info,   HENCE CORRECT ANSWER

cledgard · Answer

I have a problem with the wording of the answers:

"It is not financially reasonable to spend any more than 30%"
This sentence does not tell us whether the expenses are reasonable or not; the expenses might be reasonable; what is unreasonable is to spend more than this amount.

If I buy a house that I cannot afford, the expenses may be reasonable. I am the one who is not financially reasonable.

So, all answers are out of scope.

samarpan.g28 · Answer

KarishmaB  can you please explain the reasoning here? Thank you in advance.

KarishmaB · Answer

Argument says that for majority of home owners, housing expenses add up to 40% their income. 
Anything more than 30% in unreasonable.

So for majority of home owners, housing expenses are unreasonable.

E. A minority of homeowners have unreasonable housing expenses
This cannot be correct. The argument says that majority has unreasonable housing expenses then how can minority have unreasonable housing expenses

B. A minority of homeowners have reasonable housing expenses
This is possible. If majority have unreasonable housing expenses then how minority can have reasonable housing expenses.

Answer (E)

Many home renters buy their first homes believing that it is cle

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Many home renters buy their first homes believing that it is cle

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