Question

Sabina makes $2,000 per month. She spends $150 on store credit and $250 on an auto loan each month. Does she have excessive debt?
A.)Yes, because her debt-to-income ratio is higher than 36 percent.
B.)No, because her debt-to-income ratio is lower than 36 percent.
C.)No, because her debt-to-income ratio lower than 42 percent.
D.)Yes, because her debt-to-income ratio is 50 percent.

Answer 1

Answer:

The answer is B because her debt to income ratio is lower than 36 percent