Louises monthly gross income is $3,700. Her employer withholds $740 in federal, state, and local income taxes and $296 in Social Security taxes per month. Louise contributes $148 per month for her IRA. Her monthly credit payments for Visa, MasterCard, and Discover cards are $39, $31, and $25, respectively. Her monthly payment on an automobile loan is $299.

(a) What is Louises debt payments-to-income ratio?

Debt payments-to-income ratio _______%

(b) Is Louise living within her means?

• No

• Yes