Kevin Jones, of Elon, North Carolina, is single and recently graduated from law school. He is employed and earns $8,600 per month, an awesome salary for someone only 26 years old. He also has $1,500 withheld for federal income tax, $490 for state income taxes, $700 for Medicare and Social Security taxes, and $240 for health insurance every month. Kevin has outstanding student loans of almost $80,000 on which he pays about $950 per month and a 0% loan on an auto loan payment of $300 on a Ford Fusion Hybrid he purchased new during law school. He is considering taking out a loan to buy a Kawasaki motorcycle.

1. What is Kevin's debt payments-to-disposable income ratio? Round your answer to two decimal places.

   %

2. Based on your answer to (a), how would you advise Kevin about his plan?

   The input in the box below will not be graded, but may be reviewed and considered by your instructor.