A couple are considering purchasing a larger house for their growing family. Below is a summary of their current combined income and expenses.

Combined Salary (Gross Annually): $115,000

Monthly Mortgage Payment:$3,600

Master Card (minimum monthly payment):$1,200Utilities

(Monthly - Heat and Electricity):$350

Car Loan Payment (Monthly):$550

Cable TV (Monthly):$55

Cell-Phone & Internet Plan (Monthly):$175

Line of Credit (minimum monthly payment):$650

Property Tax (annual):$3,200

1.What is the couple's average monthly income?

a.$8,500

b.$8,825

c.$9,805

d.$9,583

e.None of the Above

2.What is their monthly shelter cost?

a.$4,300

b.$3,992

c.$4,217

d.$3,792

e.None of the Above

3.What is their Gross Debt Service (GDS) Ratio?

a.44.00%

b.42.65%

c.43.00%

d.42.64%

e.None of the Above

4.Is this an acceptable GDS?

a.Yes, it is below 32%

b.No, it is above 32%

c.Yes, it is less than 10%

d.No, it is less than 10%

e.None of the Above

5.What are their monthly debt payments?

a.$3,000

b.$2,100

c.$3,740

d.$2,700

e.None of the Above

6.What is their Total Debt Service (TDS) Ratio?

a.73.00%

b.67.77%

c.76.49%

d.72.17%

e.None of the Above

7.Is this an acceptable TDS?

a.Yes, it is below 40%

b.No, it is above 40%

c.Yes, it is below 20%

d.No, it is below 20%

e.None of the Above