Using a Back-End Ratio of 37 Percent,a Person with a $360

question 191

Multiple Choice

Using a back-end ratio of 37 percent,a person with a $360 auto loan would need a monthly gross income of approximately ____ to buy a home with total monthly payments of $1,420.

• A)$3,838
• B)$4,811
• C)$7,903
• D)$2,393

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Definitions:

Cost

The amount of money required to purchase something or the expense associated with creating a product or service.

Markup Percent

The proportion by which the price of an item is marked up to establish its retail price.

Markup Percent

The percentage increase on the cost price of goods to determine the selling price, representing the profit margin.

Cost

The amount of money required to purchase, produce, or maintain something, often considered in business and financial contexts.