Question

Steve has a monthly income of $4,000 he also has a mortgage of $1,500 and a car payment of $345 what is his debt to income ratio

Answer 1

well put it into a ratio 1845:4000 and simplify it

divided by 5 (because of the Greatest Common Factor) the ratios would become 369:800

so therefore

the debt to income ratio would be 369:800

or another way to write it is ↓

`(369)/(800)`
hope this helps and I'm sorry if I made a mistake

Answer 2

to calculate your debt to income ratio you must divide your total debt by your income to get your DTI

1500 + 345= 1845 / 4000 or 46%