Robert Smith has monthly net income of $1,200. He has a house payment of $550 per...

Robert Smith has monthly net income of $1,200. He has a house payment of $550 per month, a car loan with payments of $250 per month, a Visa card with payments of $40 per month, and a credit card with a local department store with payments of $58 per month. What is Robert’s debt payments-to-income ratio?

Expert Solution

Debt payment to income ratio = (car payment + vis card payment + credit card payment)/net income

= (250 + 40 + 58)/1200

= .29

jeff jeffy answered 2 years ago

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