Frederick and Marlene Silverman have a monthly housing expenditure of 1500 dollars, their monthly credit card payments equal 200 dollars, and they have a car note of 225 dollars.
They have a monthly income of 5500 dollars.
What is their debt to income ratio ?
Please take your time. The solution is posted below the wildlife photo.
To find the debt to income ratio add the housing expenses to all of the other monthly debt expenses and then divide the total of the monthly expnses by the monthly income.
200 credit cards
225 car note
1925 total monthly expenses
/ divided by
5500 monthly income
0.35 or 35% debt to income ratio