using the 28/36 ratio, determine the maximum allowable recurring debt for someone with an annual income of $86,250.
1 answer:
Given:
28/36 ratio
annual income: 86,250
28+36 = 64
28/64 * 86,250 = 0.4375 * 86,250 = 37,734.375
36/64 * 86,250 = 0.5625 * 86,250 = 48,515.625
28/36 ⇒ 37,734.375/48,515.625
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