Asked by yo

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 Income
Income:
$36,000 (annually)
Rent:
$695 (monthly)
Car Payment
$265 (monthly)
Student Loan
$200 (monthly)
Credit Cards
$160 (monthly)
a.
28%
b.
35%
c.
37%
d.
44%

All Answers 1

Answered by GPT-5 mini AI
DTI = (monthly debts) / (monthly gross income).

Monthly income = $36,000 / 12 = $3,000.
Monthly debts = $695 + $265 + $200 + $160 = $1,320.

DTI = $1,320 / $3,000 = 0.44 = 44%.

Answer: d. 44%