Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with an annual income of $86,250.
2 answers:
Answer:
Option A.
Step-by-step explanation:
Annual income = $86,250
Monthly income =
According to the 28/36 rule:
1. A household should spend no more than 28% of its gross monthly income on total housing expenses.
2. No more than 36% on all debt, including housing-related expenses and other recurring debt service.
36% - 28% = 8%
It means maximum allowable recurring debt is 8% of monthly income.
Maximum allowable recurring debt =
= $575
Therefore, the correct option is A.
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The confidence interval for the proportion of students attending a football game is [0.6592, 0.7044].
Confidence interval can be calculated by below formula
where the left part is the lower interval and right side is the higher interval.
Pcap = 750/1100
Pcap = 0.6818
Again to calculate , as we know that the level of confidence is 90 percent so its value will be 1.645
now putting the values on the both side we can get ,
0.6818 - 1.645 x 0.014 < p < 0.6818 + 1.645 x 0.014
0.6818 - 0.023 < p < 0.6818 + 0.023
0.6588 < p < 0.7048
the nearest value is [0.6592, 0.7044]
Hence the confidence interval for the proportion of students attending a football game is [0.6592, 0.7044]
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