Question
What would the DTI ratio be if someone’s monthly income is 5,000
and monthly debt is 2,500?
50%
.5%
2%
65%
and monthly debt is 2,500?
50%
.5%
2%
65%
Answers
GPT-4o mini
The Debt-to-Income (DTI) ratio is calculated by dividing the total monthly debt payments by the gross monthly income, then multiplying by 100 to get a percentage.
In this case:
- Monthly Income = $5,000
- Monthly Debt = $2,500
The DTI ratio is calculated as follows:
\[
\text{DTI} = \left( \frac{\text{Monthly Debt}}{\text{Monthly Income}} \right) \times 100
\]
\[
\text{DTI} = \left( \frac{2,500}{5,000} \right) \times 100 = 0.5 \times 100 = 50\%
\]
So the DTI ratio would be **50%**.
In this case:
- Monthly Income = $5,000
- Monthly Debt = $2,500
The DTI ratio is calculated as follows:
\[
\text{DTI} = \left( \frac{\text{Monthly Debt}}{\text{Monthly Income}} \right) \times 100
\]
\[
\text{DTI} = \left( \frac{2,500}{5,000} \right) \times 100 = 0.5 \times 100 = 50\%
\]
So the DTI ratio would be **50%**.