Question: USE THE FOLLOWING DATA TO ANSWER THE QUESTION John and Anne have the following expenses and account balances: Johns annual 401(k) contribution $22,000 Johns annual
USE THE FOLLOWING DATA TO ANSWER THE QUESTION
John and Anne have the following expenses and account balances:
| Johns annual 401(k) contribution | $22,000 |
| Johns annual salary | $165,000 |
| Current Liabilities | $36,000 |
| Housing Costs (PITI) monthly | $3,450 |
| Cash & Cash Equivalents | $60,000 |
| Monthly non-discretionary cash flows | $7,500 |
| Monthly debt payments other than housing | $1,000 |
| * Johns employer matches $1 for $1 up to 5% of his salary in his 401(k) plan. | |
Based on the information above, calculate the Housing Ratio 1.
| 20.42% | ||
| 24.21% | ||
| 25.09% | ||
| 22.78% |
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