Joseph is looking to lease a new car. The dealerships finance person stated that their banks will not approve any amount over the amount computed at a 22% percent debt payment ratio. If Josephs net monthly income is $3200, and he also pays $600 in student loan payments, how much can he afford to pay for an auto lease?

$572 $836 $704 $104

How can you determine whether it is worthwhile to pay a higher APR for a credit card that offers you frequent flier miles for using your credit card?

The miles are usually worth less than the additional cost of credit.

If you do not ever keep a balance on your credit card, the miles are essentially free.

It is always a good deal to get frequent flier miles.

It is never worthwhile because frequent flier miles have no monetary value.

Karens credit card balance is $4500 at an 12% APR. It has become difficult to make the minimum payment each month. She decided to make a plan for paying off the credit card by increasing her hours at her part-time job and applying the income to debt reduction. She estimates that she can pay $300 per month, and she plans to avoid using her card for any new purchases. How long will it take her to pay off the card dues?

5 months

14 months

11 months

16 months