Finance
A borrower's annual income is $60,000. Their proposed housing expense is $1,500/month. What is the front-end (housing) ratio?
A25%
B30%✓ Correct
C33%
D28%
Explanation
Monthly gross income = $60,000 ÷ 12 = $5,000. Front-end ratio = $1,500 ÷ $5,000 = 30%.
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