Chelsea Menken, of Providence, Rhode Island, recently graduated with a degree in food science and now works for a major consumer foods company earning $70,000 per year with about $54,000 in take-home pay. She rents an apartment for $1,200 per month. While in school, she accumulated about $38,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $7,000. She has been making the minimum payments on the account of about $240 a month. She has assets of $14,000. k a. Calculate Chelsea's debt payments-to-disposable income ratio. Round your answer to two decimal places. b. Calculate Chelsea's debt-to-income ratio. Round your answer to two decimal places. c. Comment on Chelsea's debt situation and her use of student loans and credit cards while in college.

Chelsea Menken, of Providence, Rhode Island, recently graduated with a degree in food science and now works for a major consumer foods company earning $70,000 per year with about $54,000 in take-home pay. She rents an apartment for $1,200 per month. While in school, she accumulated about $38,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $7,000. She has been making the minimum payments on the account of about $240 a month. She has assets of $14,000. k a. Calculate Chelsea's debt payments-to-disposable income ratio. Round your answer to two decimal places. b. Calculate Chelsea's debt-to-income ratio. Round your answer to two decimal places. c. Comment on Chelsea's debt situation and her use of student loans and credit cards while in college.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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