Respuesta :
The debt to income ratio of Jim for the particular year is 40%.
How to compute the debt-to-income ratio?
Given,
Annual salary =$96,000
Interest received on saving account (monthly) =$1,200.
The interest received for the entire year will be:
[tex]\begin{aligned}\rm{Total\; Interest \;Income}&=\rm{Monthly\;Income}\times12\\&=\$1,200\times12\\&=\$14,400\end{aligned}[/tex]
Monthly expenses:
mortgage payment =$2,500; lease payment =$250; minimum credit card payment =$500; and speed boat =$425.
The yearly expenses will be:
[tex]\begin{aligned}\text{Total Expenses}&=\text{Sum of all Monthly Expenses}\times12\\&=(\$2,500+\$250+\$500+\$425)\times12\\&=\$3,675\times12\\&=\$44,100\end{aligned}[/tex]
Now, the debt to income ratio is computed as follows:
[tex]\begin{aligned}\text{Debt to Income Ratio}&=\dfrac{\text{Total Expenses}}{\text{Total Interest Income + Annual Salary}}\\&=\dfrac{\$44,100}{\$14,400+\$96,000}\\&=0.399\;\text{or}\; 40\%\end{aligned}[/tex]
Therefore, option c. 40% is correct.
Learn more about debt to income ratio, refer to the link:
https://brainly.com/question/3886471
