Answer:
a. $256
Step-by-step explanation:
The computation of the maximum allowable recurring debt is shown below:
Given ratio = 28:36
And the monthly income is $3,200
So the maximum expense on housing = 28% of $3,200 = $896
And, the maximum expense on total debt = 36% of $3,200 = $1,152
Now the maximum alloweable recurring debt is
= $1,152 - $896
= $256
