A college drop out owes $42,000. Her loan has an interest rate of 6% a year and a ten year maturity. Determine her monthly payment. She currently has a job that pays $10 an hour for 160 hours a month. What percentage of her monthly before tax pay goes to paying off her loan? Use the table below for the following part: What percentage of her after tax income per year goes to paying her total loan payments for one year?

 

Single Filing Status
Income between	Marginal tax rate
$0 to $8,700	10%
$8,700 to $35,350	15%
$35,350 to $85,650	25%