Answers 26-27 Ignite Technical Math-Financial Math - MA2007 Applying for a LoanQuestion 21

21

QuizMultiple Choice

Applying for a Loan

Question 21 • 26-27 Ignite Technical Math-Financial Math - MA2007

Johnny’s monthly expenses and income are listed below. Calculate Johnny’s debt-to-income (DTI) ratio. Johnny's Monthly Debt and Income Housing: Rent $950.00 Renter's 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

Answer

A

28%

B

33%

C

31%

D

35%

Explanation

Add the listed monthly expenses: $950 + $25 + $250 + $239 + $25 + $40 = $1,529. Johnny’s total monthly income is $4,400 + $600 = $5,000. His DTI ratio is ($1,529 ÷ $5,000) × 100 = 30.58%, which rounds to 31%, choice c.

AI-written and checked against the verified answer.

More from this Course

28 verified answers

Financing a Car

29 verified answers

Leasing vs. Buying a Car

10 verified answers

Financing a Car