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Whitepunk [10]
3 years ago
13

A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a c

ar payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what is the total debt ratio?
Mathematics
1 answer:
Digiron [165]3 years ago
6 0

Answer:

Step-by-step explanation:

The buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly. This means that the buyer's monthly debt payments is

1000 + 150 + 400 = $1550

Debt ratio = monthly debt payments/monthly gross income

If the buyer earns a monthly gross income of $5,000, then

Debt ratio = 1550/5000

= 0.31

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