7
QuizMultiple Choice

Applying for a Loan

Question 7 • 2025-2026 GSP Mathematical Reasoning for Decision Making

Sally spends $1,500 each month on her mortgage, mortgage insurance and property taxes. She has three credit cards with minimum monthly payments that total to $125.00 and a monthly car payment for $349.00. She currently brings in a gross monthly income of 3,750.00 from her job. Calculate Sally’s debt-to-income (DTI) ratio.

Answer
A
40%
B
43%
C
49%
D
53%

Explanation

Add Sally’s monthly debt payments: $1,500 + $125 + $349 = $1,974. Divide by her gross monthly income: $1,974 ÷ $3,750 = 0.5264, or about 53%. The correct choice is 53%.

AI-written and checked against the verified answer.

Previous
Next