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:

Generalized Anxiety Disorder

A mental health condition characterized by persistent and excessive worry about various aspects of life, beyond that of normal stress.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that leads to avoidance behavior.

Panic Disorder

A psychiatric disorder characterized by recurrent unexpected panic attacks—sudden periods of intense fear or discomfort that may include palpitations, sweating, and feelings of impending doom.

Obsessive-Compulsive Disorder

Obsessive-Compulsive Disorder (OCD) is a mental disorder characterized by recurrent, unwanted thoughts (obsessions) and/or repetitive behaviors (compulsions).