John just moved out of state and, in doing so, had to take a salary cut. at his previous job, his annual salary was $47,000 and his monthly expenses included a $850 rent payment, a $325 car payment, and $375 in minimum credit card payments. his new job has a salary of $43,500. he has the same car payment and minimum credit card payments, but his new apartment costs a mere $625 per month. how did john's move affect his debt-to-income (dti) ratio?

a. john's dti ratio decreased by 3%.

b. john's dti ratio increased by 3%.

c. john's dti ratio decreased by 9%.

d. john's dti ratio increased by 9%.

Option A- John's DTI ratio decreased by 3%.

Step-by-step explanation:

Given : John just moved out of state and, in doing so, had to take a salary cut.

At his previous job, his annual salary was $47,000 and his monthly expenses included a $850 rent payment, a $325 car payment, and $375 in minimum credit card payments.

His new job has a salary of $43,500. He has the same car payment and minimum credit card payments, but his new apartment costs a mere $625 per month.

To find : How did John's move affect his debt-to-income (DTI) ratio?  

Solution :

His previous job salary is $47,000 and have monthly expenses

Rent payment = $850

Car payment = 325

Minimum credit card payment = $375

His DTI is sum of all expenses into 12 divided by his salary.

DTI is in the percentage form.

Therefore, DTI of previous salary is 39.5% .......[1]

His new job salary is $43,500 and have monthly expenses

Rent payment = $625

Car payment = 325

Minimum credit card payment = $375

His DTI is sum of all expenses into 12 divided by his salary.

DTI is in the percentage form.

Therefore, DTI of new salary is 36.5% ........[2]

from [1] and [2] DTI decreases.

Affect in his debt-to-income ratio is subtraction of [1] - [2]

Change = 39.5%-36.5% = 3%

Hence, Option A- John's DTI ratio decreased by 3%.

A

Step-by-step explanation:

a. John's DTI ratio decreased by 3%.  

first option

a function is a relation in which an input is paired with exactly one output.

so, let's find the right answer.

in our first option, our inputs are january, february, and march. the outputs are 30, 28, and 25. each input has it's own output. this is correct!

our second option we know is incorrect, because ms. valverade has two outputs, dogs and cats. this is not a function.

our third option is incorrect as well. the yellow square has two ouputs, the square and the triangle.

lastly, in our fourth option, we see the number 7 two times with a different output. therefore, this is not a function.

remember: each input must be paired with only one output!