Question
Zainab monthly gross income is $3,500. Her employer withholds 20% in income taxes and 5% in Social Security taxes per month. Zainab contributes $80 per
Zainab monthly gross income is $3,500. Her employer withholds 20% in income taxes and 5% in Social Security taxes per month. Zainab contributes $80 per month for her GOSI. Her monthly credit payments for Visa and MasterCard are $50 and $70 respectively. Her monthly payment on an automobile loan is $400.
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Calculate Zainabs net take-home pay (0.5 mark)
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What is Zainabs debt payments-to-income ratio? (0.5 mark)
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Is Zainabs living within her means? why? (2 mark)
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What is the maximum amount of debt that she can afford?
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The Financial Services Marketing Handbook
Authors: Evelyn Ehrlich
2nd Edition
1118065719, 978-1118065716
