Answers Financial Math N/A — ExamQuestion 42

42

QuizMultiple Choice

N/A — Exam

Question 42 • Financial Math

Mia has a gross monthly salary of $⁢4,500 , receives $⁢800 in rental income, and earns $⁢200 from freelance work each month. Her debt payments total $⁢1,200 per month. What is her debt-to-income ratio, written as a percent? Use the debt-to-income ratio formula: (total monthly debt payments)/(gross monthly income)⋅100

Answer

A

24 percent

B

26 point 5 percent

C

21 point 8 percent

D

18 percent

Explanation

Add Mia’s monthly income sources: $4,500 + $800 + $200 = $5,500. Divide her $1,200 in monthly debt payments by $5,500, then multiply by 100: (1,200 ÷ 5,500) × 100 ≈ 21.8%. The correct choice is 21.8 percent.

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