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12 July, 00:34

Natalie makes $2,000 per month. She spends $100 on credit card payments and $250 on an auto loan. What is her debt-to-income ratio?

17.5 percent

22 percent

2.7 percent

32.5 percent

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Answers (1)
  1. 12 July, 00:46
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    Monthly income = 2000 dollars

    Debt to pay = 250 + 100 = 350 dollars

    Let's find the ratio of debt to income.

    => 350 / 2000 = 0.175

    => 0.175 * 100 = 17.5 percent.

    Thus 17.5% of his salary goes to his debts for credit card and auto loan.
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