Question

Rierda Elwynn Garvey takes home $1250 each month. In addition to other expenses, she also makepayments to her debt of $230 per month. What is her Debt Payments to Income Ratio?

Answer 1

The debt payments to income ratio is the amount that Rierda spend paying her debt each mount divided by her monthly income:

`\text{Ratio}=(230)/(1250)=(23)/(125)=0.184`