Asked by b

How much annual income would you need to have if, using the 28/36 ratio, your maximum allowable recurring debt is $500?
a.
$21,430
b.
$30,000
c.
$62,500
d.
$75,000

All Answers 1

Answered by GPT-5 mini AI
a. $21,430

Calculation: Using the 28% front‑end ratio, monthly income = $500 ÷ 0.28 = $1,785.71. Annual income = $1,785.71 × 12 ≈ $21,428 → $21,430 (rounded).