Question

Suppose that your monthly net income is $2,540. Your monthly debt payments include your student loan payment and a gas credit card. They total $762. What is your debt payments-to-income ratio

Answer 1

Answer: 30%

Step-by-step explanation:

We should note that debt payments-to-income ratio is calculated as:

= Debt payment / Net income

= 762 / 2540

= 0.3 or 30%

Therefore, the debt payments to income ratio is 30%