Bessie has an annual salary of $51,360. Each month she has a car payment of $210 and a student loan of $50. If she applies for a home loan, how likely is it Bessie will be approved based on her debt-to-income ratio? a. Very likely; recurring debt is less than what is allowed. b. Somewhat likely; recurring debt is equal to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer. Please select the best answer from the choices provided A B C D

a. Very likely; recurring debt is less than what is allowed.

Explanation:

The Debt-to-income ratio is a very important and widely used method by lenders to decide if they can loan out cash to a person. It is calculated by dividing the debt of a person by their monthly income to find out the percentage of their income to be used for debt.

Included in this calculation as a very important factor is recurring debt. Bessie's recurring debts in this instance are quite minute compared to her income so there is a high chance that she will be approved for a home loan.

answer; /// the above statement is (false);