Bessie has an annual salary of $51,360. each month she has a car payment of $210 and a student loan of $50. if she applies for a home loan, how likely is it bessie will be approved based on her debt-to-income ratio? a. very likely; recurring debt is less than what is allowed. b. somewhat likely; recurring debt is equal 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 correct option is (a) Very likely; recurring debt is less than what is allowed.

Step-by-step explanation: Given that Bessie has an annual salary of $51,360 and each month she has a car payment of $210 and a student loan of $50.

We are to find the likeliness that Bessie's home loan will be approved based on her debt-to-income ratio.

The acceptable debt-to-income ratio according to most of the lenders is no more than 28% to 33%.

Bessie's total monthly bill is given by

and her total monthly income is given by

Therefore, the debt-to-income ratio of Bessie will be

Since the debt-to-income ratio percentage is less than what is allowed, so it is very likely that Bessie's home loan will be approved.

Thus, option (A) is correct.

The annual salary of Bessie = $51360

Her monthly salary becomes = = $4280

Her monthly payments include =

Amount left after payments =

Hence, it is very likely that she gets a home loan because recurring debt is less than what is allowed.

Now, debt to income ratio for a month is =

In percentage, it becomes 6% that falls under the acceptable debt-to-income ratio.

Hence, option A is the answer.

i think 5 miles per hour

step-by-step explanation: