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Misty earns $ 5 , 5 0 0 per month. She pays $ 7 0 0 each month in rent. She also makes these monthly
Misty earns $ per month. She pays $ each month in rent. She also makes these monthly payments: $ for her car payment, $ for her student loan payment, and $ for her credit card bill.
a What would Misty's FrontEnd DTI be Round your answer to the nearest tenth of a percent.
b What would Misty's BackEnd DTI be Round your answer to the nearest tenth of a percent.
c Based on your answers to parts a and b would the bank approve a loan that Misty applies for? Use the cutoffs that were discussed in class FrontEnd DTI and BackEnd DTI to make your decision.
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