Question

Manuel's monthly expenses and income are listed below. Calculate Manuel's debt-to-income (DTI) ratio. Show work.Manuel's Monthly Debt and IncomeHousing:RentRenter's Insurance$875.00$33.00Credit:StudentCar$190.00$313.00$30.00 (minimum)$50.00 (minimum)Credit Card #1Credit Card #2Income:Sales RepTutoring$5,200.00$570.00

Answer 1

Given:

housing rent=$875

Housing renters insurance=$33

Credit : $190, $313, $30 and $50

Income is $5200 , $570

To calculate DTI,

DTI=Total monthly debt payment/Gross monthly income

Total monthly debt payment=875+33+190+313+30+50=1491

Gross income=5200+570=5770

`\begin{gathered} \text{DTI}=(1491)/(5770) \\ =0.2584 \end{gathered}`

The DTI ratio is 0.2584