Question
A. Brian Southard is evaluating his debt safety ratio. His monthly take-home pay is $4,105. Each month, he pays $360 for an auto loan, $115
A. Brian Southard is evaluating his debt safety ratio. His monthly take-home pay is $4,105. Each month, he pays $360 for an auto loan, $115 on a personal line of credit, $75 on student loan, $28 on a department store charge card, $59 on his bank credit card, $102 on his home equity line, and $680 on home mortgage. What is Brians debt safety ratio? .
B. Given his take-home pay, what is the maximum amount of monthly debt payments that Brian can have if he wants his debt safety ratio to be 15%?
C. Given his current monthly debt payment load, what would Brian's take-home pay have to be if he wants a 15% debt safety ratio?
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