Question

Susan just got a promotion that increased her annual salary from $52,000 to $68,000. Susan's monthly expenses included a mortgage payment of $1 500 three minimum credit card payments that total $350, a lease payment of $280, a student loan payment of $250, and a personal loan payment of $325. How did Susan's debt-to-income ratio change with her promotion?
a. Susan's debt-to-income ratio decreased by about 2%
b. Susan's debt-to-income ratio increased by about 2%
c. Susan's debt-to-income ratio decreased by about 15%.
d. Susan's debt-to-income ratio increased by about 15%​

Answer 1

Answer:

c. Susan's debt-to-income ratio decreased by about 15%

Step-by-step explanation:

Susan's previous salary = $52,000

Susan's new salary = $68,000

Susan's mortgage = $1,500

The total of three minimum credit card payment = $350

Her lease payment = $280

Her student loan payment = $250

Her personal loan payment = $325

Therefore, her total debt = $1,500 + $350 + $280 + $250 + $325 = $2,705

Her new Debt to loan ratio = (Her total deb)/(Her total new income) = 2705/68000 = 3.9779 %

Her previous to loan ratio = (Her total deb)/(Her total previous income) = 2705/52000 = 5.2%

The percentage change in her debt to income ratio = (5.202 - 3.9779)/5.202 ≈ 23% decrease

Therefore, the best option is Susan's debt-to-income ratio decreased by about 15%.

Answer 2

Answer:

c. Susan's debt-to-income ratio decreased by about 15%

Step-by-step explanation:

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