45
RCMultiple Choice

Topic Test — Cumulative exam

Question 45 • ****Spring 2026 Financial Math - MA2007 MQS21QXV

You work for a lending institution and are tasked with whether or not to approve a home loan, using the standard 28/36 ratio. The loan application is for $230,000. You see that the applicant has an annual salary of $83,000. 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?

Answer
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.
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