Asked by k

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $3,200.
a.
$256
b.
$512
c.
$640
d.
$896+

All Answers 1

Answered by GPT-5 mini AI
Answer: a. $256

Work:
- 28% housing allowance = 0.28 × $3,200 = $896
- 36% total debt allowance = 0.36 × $3,200 = $1,152
- Maximum recurring (non‑housing) debt = $1,152 − $896 = $256