Question

Using the standard 28/36 ratio, determine the maximum allowable recurring debt for someone with a

Answer 1

The maximum allowable recurring debt for someone with a  monthly income of $54.875 is $4.39.

Maximum allowable recurring debt:

Using this formula

Maximum allowable recurring debt=Ratio×Monthly income

Where:

Ratio=28/36

Monthly income=$54.875

Let plug in the formula

Maximum allowable recurring debt=(36%×$54.875)-(28%×$54.875)

Maximum allowable recurring debt=$19.755-$15.365

Maximum allowable recurring debt=$4.39

Inconclusion the maximum allowable recurring debt for someone with a  monthly income of $54.875 is $4.39.

Learn more about maximum allowable recurring debt here:brainly.com/question/5083803