Answer:
d. 44%
Explanation:
The formula to compute the debt to income ratio is shown below:
Debt to income ratio = (Debt) ÷ (Income) × 100
where,
Debt = (Rent expense + car payment + student loan + credit card payment) × total number of months in a year
= ($695 + $265 + $200 $160) × 12 months
= $1,320 × 12 months
= $15,840
And, the income is $36,000
So, the ratio would be
= ($15,840 ÷ $36,000) × 100
= 44%
