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Trudy’s monthly expenses are outlined in the chart below. Trudy’s job pays her $36,000 annually. Determine Trudy’s DTI (debt-to-income) ratio.

a. 28%
b. 35%
c. 37%
d. 44%

2 Answers

5 votes

Answer:

The answer Is D for 2020

Step-by-step explanation:

User Chemila
by
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7 votes

Answer:

d. 44%

Step-by-step explanation:

The formula to compute the debt to income ratio is shown below:

Debt to income ratio = (Debt) ÷ (Income) × 100

where,

Debt = (Rent expense + car payment + student loan + credit card payment) × total number of months in a year

= ($695 + $265 + $200 $160) × 12 months

= $1,320 × 12 months

= $15,840

And, the income is $36,000

So, the ratio would be

= ($15,840 ÷ $36,000) × 100

= 44%

User Yuval Harpaz
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