Question
Noel and Herman need to replaceNoel's car. But with the furniture and appliancepayments, the credit cardbills, andHerman's carpayment, they are uncertain if they can afford
Noel and Herman need to replaceNoel's car. But with the furniture and appliancepayments, the credit cardbills, andHerman's carpayment, they are uncertain if they can afford another payment. Theauto-financing representative hasasked, "What size payments are you thinkingof?" Current payments(excluding the potential cost ofNoel's car) total $374 of their$2,570 combined monthlytake-home pay. Calculate the debt limit ratio to help them decide about the car purchase and answer thequestion, "What size payments are you thinkingof?" by first assuming a 15 percent limit and then"stretching" it to a 20 percent limit.
Based on a15% limit, the maximum car payment that Noel and Herman can afford for a car for Noel is $____. (Round to the nearestcent.)
based on 20% limit etc.. ?
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