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3 years ago

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Assuming that a person going to community college can't afford to go to a four-year college is an example of ) a generalization.

b) discrimination. O c) a stereotype. O d) tolerance.

1 answer:

vovikov84 [41]3 years ago

7 0

Answer:

The answer is C. Stereotype

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

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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.

<h3>What is a home loan?</h3>

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

Given values:

<u>Persons </u> <u> Monthly Incomes </u> <u> Recurring debts </u>

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

<u>Step-1 </u> Computation of debt-to-income ratio of person A:

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

<u>Step-2 </u>Computation of debt-to-income ratio of person B:

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

<u>Step-3 </u>Computation of debt-to-income ratio of person C:

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

<u>Step-4 </u>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:

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