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Nicholas makes $2,000 per month. He spends $300 on credit card payments and $350 on an auto loan. What is his debt-to-income ratio? 17.5 percent 22 percent 2.7 percent 32.5 percent

Respuesta :

$300+$350=$650

650/2,000=0.325

Move the decimal over to get 32.5%

This works with any percentage (get 65/80 on a test, divide 65 by 80 and get 0.8125 which makes 81.25%)
TaeKwonDoIsDead

We have to find Debt-to-Income ratio. It is simply the ratio of total debt and total income.

From the given information, his income is $2000. Also, amount of debt is $300 ( credit card payments) and $350 (auto loan), so [tex]300+350=650[/tex]

Debt-to-Income ratio = [tex]\frac{300+350}{2000} =\frac{650}{2000}=0.325[/tex]

To get percentage, we multiply it by 100 to get:

[tex]0.325*100=32.5[/tex] %


ANSWER: 32.5 percent

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