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madeline rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. right now, madeline is living at home and works in a shoe store, earning a gross income of $1,020 per month. her employer deducts a total of $200 for taxes from her monthly pay. madeline also pays $130 on several credit card debts each month. the loan she needs for chiropractic school will cost an additional $170 per month.

Respuesta :

The following question can be solved with the help of the following formula of debt to income ratio.

Debt to Income ratio = Debt Payments/Gross Monthly Income

820 - 145 = 675

95 / 675 = .14 14% without college loan

95 + 120 = 215

215 / 675 = .32 32% with college loan

Debt to income ratio (DTI) compares your monthly loan payments to your monthly income. It refers specifically to the portion of your gross monthly income (before taxes) that is used to pay off debts such as rent, a mortgage, credit cards, and other obligations.

Lenders look at your DTI when you ask for credit to help them assess the risk of you taking on additional obligations. Make your own debt-to-income calculations using the information below, and learn what it means to lenders.

Learn more about Debt to income ratio here brainly.com/question/20901566

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