Question

Angela has a monthly gross income of $3000 and her expenses are $1,200. What is her back-end ratio

Answer 1

Her back-end ratio is 40%.

Explanation:

Back-end ratio is ratio, that indicates what portion of a person's monthly income goes toward paying debts. The formula is (Total monthly debt expense / Gross monthly income) x 100

So..1,200/3000=0.4

0.4*100=40