Answers26-27 Ignite Technical Math-Financial Math - MA2007Topic TestQuestion 1
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Topic Test

Question 1 • 26-27 Ignite Technical Math-Financial Math - MA2007

Trudy’s monthly expenses are outlined in the chart below. Trudy’s job pays her $36,000 annually. Determine Trudy’s DTI (debt-to-income) ratio.Trudy's Debt and IncomeIncome:$36,000 (annually)Rent:$695 (monthly)Car Payment$265 (monthly)Student Loan$200 (monthly)Credit Cards$160 (monthly)

Answer
A
28%
B
35%
C
37%
D
44%

Explanation

Convert Trudy’s annual income to monthly income: $36,000 ÷ 12 = $3,000. Her monthly expenses total $695 + $265 + $200 + $160 = $1,320. Divide $1,320 by $3,000 and multiply by 100 to get a DTI ratio of 44%, so the correct choice is 44%.

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