Answer:
The debt-to-income ratio is 13:60
Step-by-step explanation:
Owen makes $3,000 per month.
He spends $300 on credit card payments and $350 on an auto loan.
[tex]\text{Dept-to-income ratio}=\dfrac{\text{Total Monthly debt}}{\text{Total monthly income}}[/tex]
Debt is amount whose amount paid by Owen.
Total monthly Debt = Credit Card Payment + Loan payment
= 300+350
= $650
Total monthly Income = $3000
Substitute into formula
[tex]\text{Dept-to-income ratio}=\dfrac{650}{3000}=\dfrac{13}{60}[/tex]
In percentage 13:60 = 21.67% ≈ 22%
Hence, The debt-to-income ratio is 13:60
