Question

johnnys monthly expenses and income are listed below. calculate johnnys debt-to-income (dti) ratio.

johnnys monthly debt and income
housing:
rent $950.00
renters insurance $25.00

credit:
student $250.00
car $239.00
credit card #1 $25.00 (minimum)
credit card #2 $40.00 (minimum)

income:
sales rep $4,400.00
tutoring $600.00

a. 28%
b. 33%
c. 31%
d. 35%

Explanation:

Calculate total monthly debt payments

Using the Debt-to-Income Ratio knowledge point

$$
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$$

Calculate total monthly gross income

Using the Monthly Gross Income knowledge point

$$
LATEXBLOCK1
$$

Calculate the debt-to-income ratio

Using the Debt-to-Income Ratio knowledge point

$$
LATEXBLOCK2
$$

Answer:

• a. 28%
• b. 33%
• c. 31% (Correct answer)
• d. 35%