Answer:
Her debt service ratio is 2.94
Explanation:
In this question we have to use the formula of debt service coverage ratio which is shown below:
Debt service coverage ratio = Net operating income / gross income ÷ total debt service ÷ total monthly loan payments
where,
Gross income is $3,000
And, the total monthly loan payments is $1,020
Now apply these values to the above formula to find the answer.
So, the answer equals to
= $3,000 ÷ $1,020
= 2.94 (monthly)
If we want to compute for yearly than multiply each (total monthly loan payments and gross income) by 12 months
Hence, her debt service ratio is 2.94
