Garrett has a gross monthly income of $⁢4,000 and pays $⁢1,200 per month toward debt, including a car loan and credit card payments. What is his debt-to-income ratio, written as a percent? Use the debt-to-income ratio formula: (total monthly debt payments)/(gross monthly income)⋅100

Use the debt-to-income formula: divide Garrett’s total monthly debt payments by his gross monthly income, then multiply by 100. The calculation is ($1,200 ÷ $4,000) × 100 = 30%. Therefore, his debt-to-income ratio is 30%, which is choice C.

AI-written and checked against the verified answer.