Directions Choose the letter of the best answer. Write the letter for the answer on aseparate piece of paper.1. A person's "safe debt load" is often defined as of a person's after-tax income lessexpenses. If Devon's after-tax income is $23,930, and his expenses are $4,800 forhousing, $4,900 for food, $1,280 for transportation, and $950 for clothes, what isDevon's safe debt load?$3,000$4,000$6,000$12,000АВTEST-TAKING TIP If you do not knowthe answer to a question, make a noteand move to the next question. Comeback to it later, after you have answeredthe rest of the questions.CD

Given, Safe debt load = 1/3 * [After tax income - expenses] After tax income = $23,930

Answered: A person's "safe debt load" is often…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A person's "safe debt load" is often defined as of a person's after-tax income les expenses. If Devon's after-tax income is $23,930, and his expenses are $4,800 fon ousing, $4,900 for food, $1,280 for transportation, and $950 for clothes, what is Devon's safe debt load? A $3,000