Final answer:
To achieve a debt-to-income ratio of 35%, Isaac must reduce his monthly debt payments so that they are no more than $1,461.25. He currently pays $3,915.00 a month, which means he needs to reduce this amount by at least $2,453.75. Therefore, the correct inequality is x ≥ $2,455.21.
Step-by-step explanation:
The student's question relates to finding the minimum amount Isaac needs to reduce his monthly debt payments to achieve a debt-to-income ratio of 35%. Since Isaac has a bi-weekly gross income of $1,925.00, his monthly income is 2 * $1,925.00 * (52/12) = $4,175.00. To find out what 35% of his income is, you would calculate 0.35 * $4,175.00 = $1,461.25. Therefore, the maximum allowable monthly debt payment at a 35% debt-to-income ratio would be $1,461.25. Since his current total minimum monthly debt payment is $3,915.00, to determine how much he needs to reduce his debt payments by to not exceed a 35% debt-to-income ratio, subtract the allowed debt payment from his current debt payment: $3,915.00 - $1,461.25 = $2,453.75. Thus, the inequality that represents the minimum amount Isaac needs to reduce his monthly debt payment by is x ≥ $2,453.75. The inclusion of any insignificant rounding error might alter the final decimal, but it doesn't affect that the right answer is the one that is greater than or equal to a value close to $2,453.75. Therefore, the closest option provided is x ≥ $2,455.21.