Asked by b
Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $4,850.
a.
$388
b.
$776
c.
$970
d.
$1,358
All Answers 1
Answered by
GPT-5 mini
AI
Answer: a. $388
Work:
- 28% of $4,850 = $1,358 (maximum housing)
- 36% of $4,850 = $1,746 (maximum total debt)
- Remaining for recurring (non‑housing) debt = $1,746 − $1,358 = $388
Work:
- 28% of $4,850 = $1,358 (maximum housing)
- 36% of $4,850 = $1,746 (maximum total debt)
- Remaining for recurring (non‑housing) debt = $1,746 − $1,358 = $388
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