Debe payments to disposable income ratio May madal Madres You should strive to maintain a debt payments-to-disposable income ratio of 15% or less. Suppose that Chinwe has a gross annual income of $38,000. Her annual deductions for taxes, 401(k) retirement plan contributions, and health insurance amount to $8,600. This leaves Chinwe with an annual disposable income of $29,400. Dividing Chinwe's annual disposable income by 12, you can determine that Chinwe has a monthly disposable income of $ This is Chinwe's budget for her monthly disposable income: $750 $50 $200 $65 $61 $115 Chinwe's Monthly Budget Rent Savings and investments Food Utilities Insurance Transportation expenses Charitable contributions Entertainment Clothing Vacations and long weekends Medical dental expenses Newspapers and magazines $25 $100 $45 $30 390 $40 175 Tool $200 Utilities $65 Insurance $61 $115 $25 $100 $45 $30 $90 Transportation expenses Charitable contributions Entertainment Clothing Vacations and long weekends Medical/dental expenses Newspapers and magazines Cable TV Personal care Gifts and holidays Health club membership Miscellaneous expenses Debt repayments $40 $75 $75 $45 $50 $95 $539 What is Chinwe's debt payments-to-disposable income ratio? Round your answer to nearest whole number. Total monthly debt payments Monthly down.com Chinwe's debt payments-to-disposable income ratio is than the recommended debt limit of 15%