Question
Which formula is used to calculate debt-to-income ratio?
total monthly debt / 100
(total monthly income / total monthly debt) x 100
(total monthly debt / total monthly income) x 100
(total monthly debt x total monthly income) / 100
total monthly debt / 100
(total monthly income / total monthly debt) x 100
(total monthly debt / total monthly income) x 100
(total monthly debt x total monthly income) / 100
Answers
GPT-4o mini
The correct formula to calculate the debt-to-income (DTI) ratio is:
**(total monthly debt / total monthly income) x 100**
This formula expresses your total monthly debt as a percentage of your total monthly income, indicating what portion of your income goes toward debt repayment.
**(total monthly debt / total monthly income) x 100**
This formula expresses your total monthly debt as a percentage of your total monthly income, indicating what portion of your income goes toward debt repayment.