medium · Certified Financial Planner General Principles

The Moreau family has a gross monthly income of $14,000. Their monthly PITI is $3,640, and they have other recurring debt payments (auto and student loans) totaling $1,540.

How do these figures compare to standard professional benchmarks for housing and total debt?

  1. Both the housing ratio and the total debt ratio are within the recommended guidelines.
  2. Both ratios exceed the standard professional guidelines for a household of this income level. in this case
  3. The housing ratio is within the 28% guideline, but the total debt ratio exceeds the 36% guideline.
  4. The total debt ratio is within the 36% guideline, but the housing ratio exceeds 28%.

Sign up free to see the explanation and track your rank →

More Certified Financial Planner General Principles practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 89,613+ practice questions, 30,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials