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17 February, 18:36

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with an annual income of $86,250.

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  1. 17 February, 18:51
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    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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