6
RCMultiple Choice

Using Graphs to Advertise — Cumulative exam

Question 6 • FowU - Financial Math - B

Jim has an annual salary of $96,000. His monthly expenses include a $2,500 mortgage payment, a $250 lease payment, $500 in minimum credit card payments, and a $425 payment on his speed boat. He also receives $1,200 in interest from his savings and other accounts each month. Calculate Jim’s DTI (debt-to-income) ratio.

Answer
A
30%
B
35%
C
40%
D
45%

Explanation

Jim’s monthly debt payments total $3,675 ($2,500 + $250 + $500 + $425). His monthly income is $9,200: $96,000 ÷ 12 = $8,000 in salary, plus $1,200 in monthly interest. Dividing $3,675 by $9,200 gives about 39.9%, which rounds to 40%. The correct choice is 40%.

AI-written and checked against the verified answer.

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