4
QuizMultiple Choice

Applying for a Loan

Question 4 • 2025-2026 GSP Mathematical Reasoning for Decision Making

Which of the following is likely to keep Harry from being approved for a loan?

Answer
A
Harry's debt-to-income is a stable 39%.
B
Harry's credit score currently sits at 702.
C
Harry has a gross monthly income of $3800.
D
Harry was able to offer his vacation home as collateral for the loan.

Explanation

A debt-to-income ratio compares monthly debt payments with gross monthly income. At 39%, Harry’s debt burden may be above the limit a lender is willing to accept, making approval less likely. A 702 credit score and offering a home as collateral may help his application, while income alone does not show how much of it is already committed to debt.

AI-written and checked against the verified answer.

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