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zvonat [6]
3 years ago
14

Seth has a monthly income of $2,500. He has a $400 car payment and owes $225 on electronic equipment. What is the percentage of

Seth's income he is paying out in debt payments
Business
1 answer:
WITCHER [35]3 years ago
4 0

Answer:

25%

Explanation:

Given:

Seth has a monthly income of $2,500

He has a $400 car payment

He owes $225 on electronic equipment.

Question asked:

What is the percentage of Seth's income he is paying out in debt payments?

Solution:

He has a car payment = $400

He owes on electronic equipment = $225

<em>These two items are treated as debt for Seth as these items are used first then pay for it.</em>

Total debt =  $400 +  $225

Total debt = $625

Now, we will find percentage of Seth's income he is paying out in debt payments,

Percentage =\frac{Total \ monthly \ debt}{Total \ monthly\  income}

                  =\frac{625}{2500} \times100\\\\ =\frac{62500}{2500} \\\\ =25

Therefore, 25% of Seth's income he is paying out in debt payments.

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