Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Louise McIntyres monthly gross income is $4,100. Her employer withholds $880 in federal, state, and local income taxes and $430 in Social Security taxes per
| Louise McIntyres monthly gross income is $4,100. Her employer withholds $880 in federal, state, and local income taxes and $430 in Social Security taxes per month. Louise contributes $280 each month for her IRA. Her monthly credit payments for VISA and MasterCard are $175 and $195, respectively. Her monthly payment on an automobile loan is $285. |
| a. | What is Louise's debt payments-to-income ratio? (Enter your answer as a percent rounded to 2 decimal places.) |
| Debt payments-to-income ratio | % |
| b. | Is Louise living within her means? | ||||
|
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
