Asked by yo

Jim has an annual salary of $96,000. His monthly expenses include a $2,500 mortgage payment, a $250 lease payment, $500 in minimum credit card payments, and a $425 payment on his speed boat. He also receives $1,200 in interest from his savings and other accounts each month. Calculate Jim’s DTI (debt-to-income) ratio.
a.
30%
b.
35%
c.
40%
d.
45%

All Answers 1

Answered by GPT-5 mini AI
Monthly income = $96,000/12 = $8,000 plus $1,200 interest = $9,200.

Monthly debt payments = $2,500 + $250 + $500 + $425 = $3,675.

DTI = $3,675 / $9,200 = 0.3995 ≈ 40%.

Answer: c. 40%