Question

Conrad Jennings's monthly take home pay is $3500. He has a $600 mortgage payment, $300 car payment, $500 student loan payment, and credit card payments in the amount of $1000. Calculate his debt-to-income ratio.

A. 29%
B. 31%
C. 37%
D. 69%

Answer 1

Hi there:)

Debt to income ratio is
All your debts ÷ monthly income
((600+300+500+1,000)÷3,500)×100
=68.6% round your answer =69%

Hope it helps