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30 November, 08:08

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?

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  1. 30 November, 09:50
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    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%
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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?
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