Owen makes $3,000 per month. He spends $300 on credit card payments and $350 on an auto loan. What is his debt- to-income ratio?
1 Answer
Jan 22, 2017
So the ratio is debt-to-income of 13:60
Explanation:
Assumption: The credit card and auto loan figures given are per month.
Total outgoings for 1 month:
Write debt-to-income ratio as;-
outgoings : income
For simplifying this is treated in the same way you would a fraction.
13 is a prime number so we can not simplify any further.
So the ratio is debt-to-income of 13:60