Calculate the Primary Housing Expense to Income Ratio (Rule of 28) and the Total Monthly Debt Expense to Income Ratio (Rule of 36) for each of the following cases.

2. Applicant Income:

$12 an hour, full-time (Applicant) (12x40X52)12=2080

$28,000 annual income (Co-applicant)

Expenses:

P&I Payment: $625 per month

RE Taxes: $2,500 per year

Home Owners Insurance: $350 per year

Credit Card (1): $25 per month

Credit Card (2): $40

Credit Card (3): $50

Utility bill: $80 per month (average)

Phone: $50 per month

Groceries: $400 per month