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

Answer: First option is correct.

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

$\frac{Debt}{Income}\times 100\\\\=\frac{350}{2000}\times 100\\\\=\frac{35000}{2000}\\\\=17.5\%$

Hence, First option is correct.

Answer 2

The answer would be 17.5%