Question

Natalie makes $2,000 per month. She spends $100 on credit card payments and $250 on an auto loan. What is her debt-to-income ratio? 17.5 percent 22 percent 2.7 percent 32.5 percent

Answer 1

The correct answer is 17.5%

The debt-to-income ratio can be figured out by dividing the total monthly debt payments by total monthly income

in this case, we need to solve the equation 350/2000*100

the answer to that is 17.5%

hope this helps, have a great day

Answer 2

Answer: First option is correct.

Step-by-step explanation:

Since we have given that

Income of Natalie makes per month = $2000

Amount She spends on credit card payments = $100

Amount she spend on an auto loan = $250

Total debt is given by

`250+100=\$350`

So, Debt-to-Income ratio is given by

`(Debt)/(Income)* 100\\\\=(350)/(2000)* 100\\\\=(35000)/(2000)\\\\=17.5\%`

Hence, First option is correct.