Asked by a

Johnny’s monthly expenses and income are listed below. Calculate Johnny’s debt-to-income (DTI) ratio.
Johnny's Monthly Debt and Income
Housing:
Rent
$950.00

Renter's Insurance
$25.00

Credit:
Student
$250.00

Car
$239.00

Credit Card #1
$25.00 (minimum)

Credit Card #2
$40.00 (minimum)

Income:
Sales Rep
$4,400.00

Tutoring
$600.00

a.
28%
b.
33%
c.
31%
d.
35%



Please select the best answer from the choices provided


A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
Total debts = 950 + 25 + 250 + 239 + 25 + 40 = $1,529
Total income = 4,400 + 600 = $5,000
DTI = 1,529 / 5,000 = 0.3058 ≈ 31%

Answer: C