1a. Steven has a job with monthly take-home pay of $3,500. Using the suggested maximum debt safety ratio, what maximum debt burden per month can he assume? (Show all work.)

1b. Jack and Jill have a combined take-home income of $4,500. Their total monthly payments on consumer debt are $875. What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?

1c. You have a $926 balance on your credit card account. The minimum payment on your account is 2 percent of the latest balance or $20, whichever is greater. What will be the minimum payment this month?

1d. The APR on this account is 18%. Assuming the $926 does not include any interest charge, how much of your minimum payment will be used for interest?