The person C that you would rate the highest on their eligibility for a home loan.
Given that,
You work for a lender that requires a 20% down payment and uses the standard debt-to-income ratio to determine a person's eligibility for a home loan.
We have to determine,
The person that you would rate the highest on their eligibility for a home loan?
According to the question,
Person A Person B Person C Person D
Home value; $175,000 $200,000 $220,000 $250,000
Income; $51,000 $58,000 $63,000 $67,000
Savings; $35,000 $40,000 $42,000 $50,000
Recurring debt; $350 $250 $200 $450
Person A has eligibility for a home loan is,
Home price $175,000 on 20% down payment,
[tex]= \dfrac{175000 \times 20}{100}\\\\= 175000 \times 0.20 \\\\= 35,000[/tex]
Person A's income is $51,000 and his saving amount is $35,000.
Person A has the highest eligible for recurring debt.
Therefore, Person A is not eligible for a home loan.
Person B has eligibility for a home loan is,
Home price $200,000 on 20% down payment,
[tex]= \dfrac{200000 \times 20}{100}\\\\= 200000 \times 0.20 \\\\= $40,000[/tex]
Person B's income is $58,000 and his saving amount is $40,000.
Person B is the highest recurring debt.
Therefore, Person B is not eligible for a home loan.
Person C has eligibility for a home loan is,
Home price $220,000 on 20% down payment,
[tex]= \dfrac{220000 \times 20}{100}\\\\= 220000 \times 0.20 \\\\= $44,000[/tex]
Person C's income is $63,000 and his saving amount is $42,000.
Person C has the lowest recurring debt.
Therefore, Person C is eligible for a home loan.
Person D has eligibility for a home loan is,
Home price $250,000 on 20% down payment,
[tex]= \dfrac{250000 \times 20}{100}\\\\= 200000 \times 0.20 \\\\= $50,000[/tex]
Person D's income is $67,000 and his saving amount is $50,000.
Person D has the highest recurring debt.
Therefore, Person D is not eligible for a home loan.
Hence, The person C that you would rate the highest on their eligibility for a home loan.
For more details refer to the link given below.
https://brainly.com/question/9911386
Answer: B
Step-by-step explanation:
Just took the test on edge and got it right
