Ask Question
29 March, 00:22

Tom is retired. He receives retirement income each month in the amount of $2500 as well as Social Security income in the amount of $1200. Tom owns 4 rental properties that he receives $1680 in rental income each month on each rental property. Tom has mortgage payments in the amount of $3200. His wife drives a Lexus with a $540 car payment and he drives a Buick with a $395 car payment. What is Frenchy's debt to income ratio?

+1
Answers (1)
  1. 29 March, 02:11
    0
    77%

    Explanation:

    The formula for calculating the debt to income ratio is:

    Total monthly debt/total monthly income.

    Therefore, we have to calculate the total of monthly debt and monthly income first.

    Monthly debt:

    Mortgage payments = $3,200

    Wife's car = $540

    Tom's car = $395

    Total = $4,135

    Monthly income:

    Retirement income = $2,500

    Social Security income = $1,200

    Rental income = $1,680

    Total = $5,380

    Debt to income ratio:

    $4,135/$5,380

    = 0.77 X 100

    = 77%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Tom is retired. He receives retirement income each month in the amount of $2500 as well as Social Security income in the amount of $1200. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers