Question

Milton Cook�s monthly take home pay is $3250. He has a $800 mortgage payment, $100 car payment, $400 student loan payment, and credit card payments in the amount of $35. Calculate his debt-to-income ratio.

A. 1%
B. 4%
C. 37%
D. 41%

Answer 1

Hi there

Debt to income ratio is
((800+100+400+35)÷3,250)×100
=41%

Hope it helps