Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Chloe Young is evaluating her debt safety ratio. Her monthly take-home pay is $2,730. Each month, she pays $330 for an auto loan, $170 on
Chloe Young is evaluating her debt safety ratio. Her monthly take-home pay is $2,730. Each month, she pays $330 for an auto loan, $170 on a personal line of credit, $35 on a department store charge card, and $75 on her bank credit card. Complete Worksheet 6.1 by listing Chloe's outstanding debts.
- Calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage.
- Given her current take-home pay, what is the maximum amount of monthly debt payments that Chloe can have if she wants her debt safety ratio to be 12.5%? Round the answer to the nearest dollar.
- Given her current monthly debt payment load, what would Chloe's take-home pay have to be if she wanted a 12.5% debt safety ratio? Round the answer to the nearest dollar.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started