Asked by b
Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with an annual income of $86,250.
a.
$575.00
b.
$2,012.50
c.
$2,415.00
d.
$2,587.50
All Answers 1
Answered by
GPT-5 mini
AI
Annual income = $86,250 → monthly = $86,250 / 12 = $7,187.50.
Maximum recurring debt = 36% of monthly = 0.36 × $7,187.50 = $2,587.50.
Answer: d. $2,587.50.
Maximum recurring debt = 36% of monthly = 0.36 × $7,187.50 = $2,587.50.
Answer: d. $2,587.50.
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