Finance
A Connecticut borrower's total monthly debt obligations are $2,800 and gross monthly income is $8,000. What is the back-end DTI ratio?
A28%
B32%
C35%✓ Correct
D40%
Explanation
Back-end DTI = Total monthly debt ÷ Gross monthly income = $2,800 ÷ $8,000 = 0.35 = 35%. Using the values given ($2,800, $8,000), apply the appropriate formula.. The correct answer is 35%.. This is a common calculation on the Connecticut real estate exam.
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