Eric Jones Develops Computer Software for a Major Company

question 90

Multiple Choice

Eric Jones develops computer software for a major company.Eric's salary and bonuses total $82,000,but he pays $29,233 in income and Social Security taxes.If Eric's annual debt repayments are $33,620,what is his debt -to-income ratio?

• A)41 percent
• B)64 percent
• C)36 percent
• D)77 percent

---

Definitions:

Consumer Income

The total amount of income earned by consumers, including wages, salaries, benefits, and investment income.

Gross Domestic Product

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Cumulative Value

The total value generated over time by a series of financial transactions or investments.

Aggregate Income

All earnings of resource suppliers in an economy during a given period, usually a year.