A) Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now, Madeline is living at home and works in a shoe store, earning a gross income of $1,280 per month. Her employer deducts a total of $330 for taxes from her monthly pay. Madeline also pays $195 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $300 per month.

Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.)

Debt Payments-to-Income Ratio:

With college loan%:

Without college loan%:

B)

Robert Sampson owns a townhouse valued at $188,000 and still has an unpaid mortgage of $153,000. In addition to his mortgage, he has the following liabilities:

Visa	$	770
MasterCard		410
Discover card		570
Education loan		3,300
Personal bank loan		950
Auto loan		5,200
Total	$	11,200

Roberts net worth (not including his home) is about $42,000. This equity is in mutual funds, an automobile, a coin collection, furniture, and other personal property.

What is Roberts debt-to-equity ratio? (Round your answer to 2 decimal places.)