Ask Question
BusinessBusiness
25 March, 11:44

Timothy Carter has a net monthly income of $5,100. He has a monthly auto loan payment of $675, a student loan payment of $345, a mortgage payment of $1,660, and a credit card minimum payment of $110. What is his debt-payments-to-income ratio?

+2
Answers (1)
  1. 25 March, 11:48
    0
    His debt-payments-to-income ratio is 53.6%

    Explanation:

    According to give data we have that the Income = $5,200

    In order to calculate his debt-payments-to-income ratio we have to calculate first the debt payment as follows:

    Debt payment = auto loan payment + student loan payment + mortgage payment + credit card payment = $675+$345+$1,660+$110 = $2,790

    Therefore, Debt payment to income ratio = Debt payment / income = $2,790/$5,200 = 0.536 = 53.6%

    His debt-payments-to-income ratio is 53.6%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Timothy Carter has a net monthly income of $5,100. He has a monthly auto loan payment of $675, a student loan payment of $345, a mortgage ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A researcher wishes to know, with 98% confidence, the percentage of women who wear shoes that are too small for their feet.
Answers (1)
The four sources of calories are A. carbohydrates, fats, sugars, and cholesterol. B. carbohydrates, proteins, fats, and sugars. C. carbohydrates, proteins, fats, and alcohol. D. carbohydrates, fiber, fat, and vitamins.
Answers (1)
North Division has the following information: Sales $1250000 Variable expenses 645000 Fixed expenses 620000 If this division is eliminated, the fixed expenses will be allocated to the company's other divisions.
Answers (1)
Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better.
Answers (1)
The following information was compiled by Frank Ironman Incorporated: Expected volume of production 50,000 units Actual volume of production 47,000 units Budgeted fixed overhead costs (for 50,000 budgeted units) $200,000 Actual fixed overhead costs
Answers (1)
New Questions in Business
Sheridan company offers its customers a pottery cereal bowl if they send in 3 boxtops from Sheridan Frosted Flakes boxes and $1. The company estimates that 60% of the boxtops will be redeemed.
Answers (1)
Kelly Realty loaned money and received the following notes during 2018:Note Date Principal Amount Interest Rate Term (1) Oct. 1 $28,000 6% 1 year (2) Jun. 30 22,000 10% 9 months (3) Sep. 19 14,000 14% 90 daysRequired:1.
Answers (1)
A method of distributing a firm's earnings to shareholders such that the shareholders can select when they want to claim the income for tax purposes is a:
Answers (1)
Parker Inc. is obligated to pay its creditors $33,333 very soon. If the market value of the firm's assets equals $49,700, calculate the residual value owed to the shareholders.
Answers (1)
Monopolistic competition is similar to perfect competition in that: Select one: a. there are a large number of firms b. firms earn economic profits in the long run c. firms face downward-sloping demand curves
Answers (1)
Home » Business » Timothy Carter has a net monthly income of $5,100. He has a monthly auto loan payment of $675, a student loan payment of $345, a mortgage payment of $1,660, and a credit card minimum payment of $110. What is his debt-payments-to-income ratio?
Sign Up Forgot Password?