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Robert Smith has monthly net income of $1,200. He has a house payment of $550 per month, a car loan with payments of $250 per month, a Visa card with payments of $40 per month, and a credit card with a local department store with payments of $58 per month. What is Robert's debt payments-to-income ratio? Group of answer choices 0% 75% 20% 8% 29%

Respuesta :

Answer:

the debt payment to income ratio is 29%

Explanation:

The computation of the debt payment to income ratio is shown below:

Debt payment to income ratio is

= (car payment + vis card payment + credit card payment) ÷ (net income )

= ($250 + $40 + $58) ÷ $1,200

= 29%

hence, the debt payment to income ratio is 29%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Robert's debt payments-to-income ratio is 29%.

The debt payments-to-income ratio is the ratio of debts payed to total income earned.

Debt payments / total income

Debt payments = car loan + visa card payment + local department store payment

$40 + $250 + $58 = $898

$898 / $1200 = 29%

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