Question

Jared has a monthly gross income of $2,250 and a monthly debt load of $200. How can his debt-to-income ratio be classified?

Excellent—10 percent or less
Ideal—between 10 and 15 percent
Good—between 15 and 20 percent
Concerning—greater than 28 percent

Answer 1

Excellent—10 percent or less

Step-by-step explanation:

got it right on quiz

Answer 2

Excellent—10 percent or less

Step-by-step explanation:

The debt-to-income ratio is the total of monthly debt payments divided by the monthly gross income. The result is expressed as a percentage by multiplying by 100. A number higher than 36% may make lenders reject loan requests.

Jared's debt-to-income ratio is $200/ $2,250

=0.08888 x 100

=8.89%