Martina and Anton Are Attempting to Qualify for Total Mortgage

question 102

Multiple Choice

Martina and Anton are attempting to qualify for total mortgage financing of $1486, heating costs of $68, and a car loan payment of $346. What minimum gross monthly income will they need to qualify for both GDS ratio of 30 percent and TDS ratio of 40 percent?

• A)$6333
• B)$4750
• C)$5180
• D)$4953

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Definitions:

Absolute Advantage

Refers to the capability of an entity to produce a good or service more efficiently than its competitors using the same amount of resources.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Leisure Time

Time spent not working and free from domestic or professional duties, allowing for rest, recreation, or personal activities.

Unproductive Activity

Unproductive Activity is an economic term that describes actions or work that do not contribute to the production of goods or services or generate economic value.