To compare: The results of the two metrics and the way Luciana qualify at both banks.
Answer to Problem 1CGP
Luciana does not qualify for a loan at National Road Bank, but at New Savings Bank, she does.
She should decrease her monthly expenses to qualify for a loan at National Road bank.
Explanation of Solution
Given information:
Monthly expenses of Luciana
Monthly income of Luciana
Monthly mortgage payment of Luciana
Calculation:
Debt-to-income ratio
Because the ratio is greater than
Mortage-to-income ratio
Because the ratio is less than
Luciana does not qualify for a loan at National Road Bank, but at New Savings Bank, she does. To qualify for a loan at National Road bank, the debt-to-income ratio should be less than
Chapter 1 Solutions
Algebra 1, Homework Practice Workbook (MERRILL ALGEBRA 1)
Additional Math Textbook Solutions
College Algebra (7th Edition)
Linear Algebra and Its Applications (5th Edition)
College Algebra
College Algebra
Mathematics All Around (6th Edition)
- Algebra and Trigonometry (6th Edition)AlgebraISBN:9780134463216Author:Robert F. BlitzerPublisher:PEARSONContemporary Abstract AlgebraAlgebraISBN:9781305657960Author:Joseph GallianPublisher:Cengage LearningLinear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning
- Algebra And Trigonometry (11th Edition)AlgebraISBN:9780135163078Author:Michael SullivanPublisher:PEARSONIntroduction to Linear Algebra, Fifth EditionAlgebraISBN:9780980232776Author:Gilbert StrangPublisher:Wellesley-Cambridge PressCollege Algebra (Collegiate Math)AlgebraISBN:9780077836344Author:Julie Miller, Donna GerkenPublisher:McGraw-Hill Education