Business, 04.12.2020 01:00, shamiyac3

PLEASE ANSWER ASAP NEED STEP-BY-STEP

You work for a lending institution and are tasked with whether or not to approve a home loan. All applicants are required to have a 20% down payment, and the standard 28/36 ratio is used

The loan application is for $230,000. You see that the applicant has an annual salary of $83,000 and a savings account balance of $50,000. The applicant also has a car payment of $315, a student loan of $140 and a boat loan of $96.

How likely are you to approve the loan?

a. Very likely; recurring debt is considerably less than what is allowed.

b. Somewhat likely; recurring debt is very close to what is allowed.

c. Not likely; recurring debt is higher than what is allowed.

d. There is not enough information given to determine the answer.

The answer is B, but I don't really understand how to get there

Answers: 3

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Do you know the correct answer?

PLEASE ANSWER ASAP **NEED STEP-BY-STEP**

You work for a lending institution and are tas...