Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.)
Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
3
![Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now, Madeline
is living at home and works in a shoe store, earning a gross income of $1,300 per month. Her employer deducts a total of $340 for
taxes from her monthly pay. Madeline also pays $200 on several credit card debts each month. The loan she needs for chiropractic
school will cost an additional $310 per month.
Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers
as a percent rounded to 2 decimal places.)
Debt Payments-to-
Income Ratio
With college loan
%
Without college loan
20.83 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd913a676-117f-47e7-8767-e93b793e0e69%2F682d6f11-d843-4e7f-a164-49935c5b27c9%2Fvfrynn_processed.png&w=3840&q=75)
Transcribed Image Text:Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now, Madeline
is living at home and works in a shoe store, earning a gross income of $1,300 per month. Her employer deducts a total of $340 for
taxes from her monthly pay. Madeline also pays $200 on several credit card debts each month. The loan she needs for chiropractic
school will cost an additional $310 per month.
Calculate her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers
as a percent rounded to 2 decimal places.)
Debt Payments-to-
Income Ratio
With college loan
%
Without college loan
20.83 %
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