Jorge has a monthly gross income of $3,500. What is his total debt-to-income ratio if he has the following monthly debt payments: $325 car payment, $290 student loan payment, $930 mortgage payment, and $400 credit card payment? (Round answer to the nearest percent.)

Question

Quizplus · Accepted Answer

To calculate the debt-to-income ratio, add up all monthly debt payments: $325 + $290 + $930 + $400 = $1,945. Then, divide the total debt by the gross income: $1,945 / $3,500 = 0.5557. Rounding to the nearest percent gives 56%.

Jorge Has a Monthly Gross Income of $3,500