QUESTION 27 Which is the correct formula for calculating the Debt to Income Ratio (DTI)? a. Divide your annual income by your total amount of debt and convert to a percentage O b. Divide your credit card balance by your biweekly paycheck amount O c. Add your student loans and credit card balances then divide by your last paycheck amount d. Divide the sum of all of your monthly debts by your monthly gross income and convert to a percentage QUESTION 28 Paying as much as you can afford against your most expensive debt, and making minimum payments against all of your other debts until that first debt is paid off, then paying off each debt in order until you are debt free is called? O a. The credit utilization ratio O b. Effective budgeting O c. Debt consolidation d. The "Avalanche" method of debt repayment QUESTION 29 Long term capital gains are taxed at higher rates than earned income O a. True b. False

Which is the correct formula for calculating the Debt to income Ratio (DTI)? a. Divide your annual income by your total amount of debt and convert to a percentage b. Divide your credit card balance by your biveekly paycheck amount c. Add your student loans and credit card balances then divide by your last paycheck amount d. Divide the sum, of all of your monthly debts by your monthly gross income and convert to a percentage QUESTION 28 Paying as much as you can aflord against your most expensive debt, and making minimum payments against all of your other debts until that first debt is paid off, then paying off each debt in order until you are debt free is celled? 2. The credit utifization ratio b. Effectivo budgeting c. Debt consolidation d. The "Avalancha" method of debt ropayment QUESTION 29 Long lorm capital gains are taxed at h igher rates than earned income a. True b. False