Natalie makes $2,000 per month. She spends $100 on credit card payments and $250 on an auto loan. What is her debt-to-income ratio?
17.5 percent
22 percent
2.7 percent
32.5 percent
Monthly income = 2000 dollars Debt to pay = 250 + 100 = 350 dollars Let's find the ratio of debt to income. => 350 / 2000 = 0.175 => 0.175 * 100 = 17.5 percent. Thus 17.5% of his salary goes to his debts for credit card and auto loan.
