Johnny's debt-to-income (DTI) ratio is 31% and this can be determined by using the formula of debt-to-income and the given data.
Given :
Johnny's monthly expenses and income are listed below.
The following steps can be used in order to determine Johnny's debt-to-income (DTI) ratio:
Step 1 - The formula of debt-to-income can be used in order to determine Johnny's debt-to-income (DTI) ratio.
Step 2 - The formula of debt-to-income is given below:
[tex]\rm Debt \;to \; income = \dfrac{Debt}{Pre\;tax \;income}[/tex]
Step 3 - Now, substitute the values of debt and pre-tax income in the above formula.
[tex]\rm Debt \;to \; income = \dfrac{950+25+250+239+25+40}{4400+600}\times 100[/tex]
Step 4 - Simplify the above expression.
Debt to income [tex]\approx[/tex] 31%
Therefore, the correct option is C).
For more information, refer to the link given below:
https://brainly.com/question/10161443
