16. In order to approve aloon, banks usually world a bock-end or debt-income ratio that is less than A. 28% B. 31% C. 15% D. 36% A B B C D

To determine the correct answer, we need to understand the concept of the debt-income ratio.<br /><br />The debt-income ratio is a measure of an individual's ability to repay their debts. It is calculated by dividing the total monthly debt payments by the gross monthly income.<br /><br />Banks typically have a threshold for the debt-income ratio that they consider acceptable before approving a loan. This threshold is usually lower than 50% to ensure that the borrower has enough income left over after paying their debts.<br /><br />Looking at the options provided:<br /><br />A. $28\%$<br />B. $31\%$<br />C. $15\%$<br />D. $36\%$<br /><br />The correct answer is C. $15\%$. This is a common threshold that banks use to determine if an individual's debt-income ratio is acceptable for loan approval.