1. Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $1,570 per month. Her employer deducts a total of $159 for taxes from her monthly pay. Kim also pays $178 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $198 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Round your answers to 2 decimal places.)

Debt payments-to-income ratio with college loan	%
Debt payments-to-income ratio without college loan	%

2. Suppose that your monthly net income is $2,400. Your monthly debt payments include your student loan payment and a gas credit card. They total $600. What is your debt payments-to-income ratio?

Debt payments-to-income ratio

%

3. The disposable income from your part-time job in 2012 and 2013 is $12,000. In 2012, you borrowed $500 at 18 percent interest. You repay your loan with interest in 2013. How much would you have available for spending in 2013? (Do not round intermediate calculations.)

Spending amount available in 2013	$

4. Carls house payment is $1,290 per month and his car payment is $399 per month. If Carl's take-home pay is $3,250 per month, what percentage does Carl spend on his home and car? (Round your answer to 2 decimal places.)

Loan payments-to-income ratio

%