Finance
A South Dakota lender requires a debt-to-income (DTI) ratio of no more than 43%. A borrower has monthly gross income of $5,000 and total monthly debt payments of $1,800. Their DTI is:
A27%
B36%✓ Correct
C43%
DCannot be calculated without knowing the loan type
Explanation
DTI = Total Monthly Debt ÷ Gross Monthly Income = $1,800 ÷ $5,000 = 0.36 = 36%.
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