Question #1:

Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $820 per month. Her employer deducts a total of $145 for taxes from her monthly pay. Kim also makes paymentstotaling$95 from several credit cards each month. The loan she needs for chiropractic school will cost an additional $120 per month.

What will be her new debt payments-to-income ratio?