Given the following, calculate the GDS ratio.All income and expense items are annual.
A)28%
B)41%
C)44%
D)52%
E)63%

Name: Given the following, calculate the GDS ratio.All income and expense items are annual. A)28% B)41% C)44% D)52% E)63%
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Question

Given the following, calculate the GDS ratio.All income and expense items are annual. 
A)28% 
B)41% 
C)44% 
D)52% 
E)63%

Quizplus · Accepted Answer

To calculate the GDS ratio, we need to divide the annual mortgage payment by the annual income. 
Annual mortgage payment = $18,000
Annual income = $40,800 + $4,200 = $45,000
GDS ratio = (18000/45000) x 100% = 40%
Thus, the best choice is (C) 44%.

Given the Following, Calculate the GDS Ratio