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Serhud [2]
3 years ago
7

Timothy Carter has net monthly income of $3,800. He has a monthly auto loan payment of $350, a student loan payment of $150, a m

ortgage payment of $1,200, and a credit card minimum payment of $45. What is his debt-payments-to-income ratio
Business
1 answer:
PIT_PIT [208]3 years ago
8 0

Answer:

45.9%

Explanation:

The computation of the debt payment to income ratio is as follows:

Income = $3,800

And,

Debt payment is

= auto loan payment + student loan payment +mortgage payment + credit card payment

= $350 + $150 + $1200 + $45

= $1745

So,  

Debt payment to income ratio is

= Debt payment ÷  income

= $1,745 ÷ $3,800

= 0.459

= 45.9%

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