1. Richard Sherman earns $7,500 per month. He is single and has $1,000 withheld for federal income tax, he lives in Nevada so no state tax, $450 for Medicare and social security taxes, and $180 for health insurance every month. Richard went to Stanford so he has $60,000 of outstanding student loans on which he pays $600 per month and a 0% auto loan payment of $500 on a Ford F150 he purchased new. He would like to buy an RV by taking out a loan.

1. What is Richards debt payments-to-disposable income ratio?