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
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
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