Which of the following is a true statement about the federal government?

You work for a lender that requires a 20% down payment and uses the standard debt-to-income ratio to determine

ratelena [41]

According to the standard debt-to-income ratio, the person who would be rated as highest in respect of eligibility for a home loan is person C.

A home loan is an amount that has been lent for the acquisition or purchase of any house. or apartment for living.

Given values:

Persons Monthly Incomes Recurring debts

Person A $4,250 ($51,000 / 12) $350

Person B $4,833 ($58,000 / 12) $250

Person C $5,250 ($63,000 / 12) $200

Person D $5,583 ($67,000 / 12) $450

Step-1 Computation of debt-to-income ratio of person A:

$\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$350}{\$4,250}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=8.23\%$

Step-2 Computation of debt-to-income ratio of person B:

$\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$250}{\$4,833}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=5.18\%$

Step-3 Computation of debt-to-income ratio of person C:

$\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$200}{\$5,250}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=3.80\%$

Step-4 Computation of debt-to-income ratio of person D:

$\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\rm\ Recurring \rm\ debt}{\rm\ Income}\\ \rm\ Debt \rm\ to \rm\ Income \rm\ ratio=\frac{\$450}{\$5,583}\\\rm\ Debt \rm\ to \rm\ Income \rm\ ratio=8.06\%$

Therefore, after finding debt to income ratios of all persons, the lowest ratio comes out to be of Person C at 3.80% which ranked to be the highest.

Learn more about the debt ratio in the related link:

brainly.com/question/14553933

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8 0

2 years ago

Read 2 more answers

How do the native tribes across the various regions of the United States compare and contrast

Dahasolnce [82]

Answer:

https://www.history.com/topics/native-american-history/native-american-cultures

Explanation:

go to this website

7 0

3 years ago

Please help me be correct please!!

Vesna [10]

I believe the answer is “C” but i’m not 100% sure.

3 0

3 years ago

Read 2 more answers

he tended to create unnecessarily difficult tests and gave his students unusually low grades. A psychoanalyst would be most like

Lelu [443]

Answer:

displacement.

Explanation:

Displacement is considered as one of the different types of psychological 'defense mechanisms' in which an individual's negative feelings or thoughts are being transferred from his or her original emotion source towards a less 'threatening' object or person.

Example: An individual who is angry or is upset with his girlfriend tends to outburst his anger or frustration on her mother or brother.

The correct answer to the question given represents the 'displacement'.

5 0

3 years ago

8. The government picking up the tuition for all students who earn a "90" or above in AP Economics? A. Increase in Aggregate Dem

igomit [66]

Answer:

The correct answer is A.

Explanation:

The fact that the government will pay the tuition for the students who get 90 or above in AP economics will raise the number of students who achieve that. Therefore the amount of tuition that the government needs to pay will increase, this will result in an increase in aggregate demand which is the total demand for a service or good supply.

So the answer is A.

I hope this helps.

8 0

3 years ago