AnswersMathematics for Data and Financial LiteracyPractice TestQuestion 4
4
practice testMultiple Choice

Practice Test

Question 4 • Mathematics for Data and Financial Literacy

Alejandra has a gross monthly salary of $⁢4,000 and pays $⁢500 toward a car loan, $⁢200 toward a credit card, and $⁢100 toward a student loan each 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
20%
B
15%
C
25%
D
30 percent

Explanation

First add Alejandra’s monthly debt payments: $500 + $200 + $100 = $800. Divide that total by her gross monthly income and multiply by 100: ($800 ÷ $4,000) × 100 = 20%. Her debt-to-income ratio is 20%, the choice labeled A.

AI-written and checked against the verified answer.

Previous
Next

More from this Course

practice test
28 verified answers

Practice Test

practice test
24 verified answers

Practice Test

practice test
16 verified answers

Practice Test