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lara [203]
2 years ago
10

HELPPPPPPP PLEASE! ASAPPPPPP

Physics
1 answer:
Sav [38]2 years ago
3 0

Answer:

Answer:

Debt payments to income ratio = 22.74%

Explanation:

Debts payment to Income ratio is calculated as follows:

= \frac{Total\ debt\ payment}{Total\ Income}

Total Income

Total debt payment

We have total debts payment = auto loan payment 685 + student loan payment685+studentloanpayment375 + credit card payment 125 =125=1,185

Total Income = $5,210

Note: Credit card is also a kind of debt as firstly all the expenses are met during the period and then the payment is made at the end of the period, therefore, there is a loan in the period. Therefore, it will be considered for payment of debt.

Debt payments to income ratio = \frac{1,185}{5,210} = 22.74

5,210

1,185

=22.74

That means the debts are 22.74% of income.

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