Timothy Carter Has Net Monthly Income of $3,800

question 11

Multiple Choice

Timothy Carter has net monthly income of $3,800. He has a monthly auto loan payment of $350, a student loan payment of $150, a mortgage payment of $1,200, and a credit card minimum payment of $45. What is his debt-payments-to-income ratio?

• A) 13.2%
• B) 14.3%
• C) 36.7%
• D) 42.0%
• E) 45.9%

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Definitions:

Conglomerate Merger

A merger between companies operating in unrelated business activities, aiming to diversify business operations and investments.

Unrelated Industries

Industries that have no direct business connection or overlap with each other.

Strategic Mergers

The process of combining two or more companies into one, with the aim of achieving strategic objectives such as market expansion, diversification, or efficiency gains.

Financial Markets

Markets in which financial assets are traded—for example, the stock market.