The debt-to-income ratio of Sally is 53%. Thus, option D is correct.
The debt to income ratio is defined as the amount of debt paid per income.
The debt to income ratio (DTI) is given as:
[tex]DTI=\dfrac{D}{I} \;\times\;100[/tex]
The debt paid by Sally is the sum of amount she paid as a mortgage, mortgage insurance, property tax, card payments, and car payments.
The amount paid by Sally are:
The total debt paid (D) by Sally are:
[tex]D=1500+125+349\\D=1974[/tex]
The total debt (D) paid by Sally is $1974.
Sally's total income (I) is $3,750
Substituting the values for DTI ratio:
[tex]DTI=\dfrac{1974}{3750} \;\times\;100\\\\DTI=0.53\;\times\;100\\\\DTI-53\%[/tex]
The debt-to-income ratio of Sally is 53%. Thus, option D is correct.
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