Jacques's total monthly loan payments amount to $1,020, while his gross income is $3,000 per month. What is his debt service ratio?
A) 34%
B) 43%
C) 50%
D) 75%
E) 82%

Question

Quizplus · Accepted Answer

The debt service ratio is calculated by dividing the total monthly loan payments by the gross monthly income and then multiplying by 100 to get a percentage. So, for Jacques, it's ($1,020 / $3,000) * 100 = 34%.

Jacques's Total Monthly Loan Payments Amount to $1,020, While His