Jamie Lee wants to determine if she can afford the monthly payments for all of her purchases before she completes the applica process. Use the information below to determine her debt payment-to-income ratio. Current Financial Situation Assets: Income: Checking account $1,900 Savings account $7,400 Gross monthly salary Net income $2,850 $2,195 Emergency fund savings account $2,900 Monthly Expenses: IRA balance $430 Rent obligation $370 Car $3,000 Utilities/Electric $80 Liabilities: Utilities/Water $50 Student loan $11,000 Utilities/Cable $75 (Jamie is still a full-time student, so Food $135 no payments are required on the loan Gas/Maintenance $140 until after graduation) Credit card payment $0 Acme Home Goods (Washer/dryer $1,650 Acme Home Goods $41 and refrigerator) Local Home Furnishings (Sofa $1,750 Local Home Furnishings $46 set) Big Box Store (52" LED HDTV) $1,150 Big Box Store $29 Automobile, Education, Personal, and Installment Loans Financial Institution or Account Number Description Current Balance Monthly Payment Student loan Charge Accounts and Credit Cards Financial Institution or Account Number Current Balance Monthly Payment Description Acme Home Goods Local Home Furnishings Big Box Store Other Loans (Overdraft Protection, Home Equity, Life Insurance Loan)
Jamie Lee wants to determine if she can afford the monthly payments for all of her purchases before she completes the applica process. Use the information below to determine her debt payment-to-income ratio. Current Financial Situation Assets: Income: Checking account $1,900 Savings account $7,400 Gross monthly salary Net income $2,850 $2,195 Emergency fund savings account $2,900 Monthly Expenses: IRA balance $430 Rent obligation $370 Car $3,000 Utilities/Electric $80 Liabilities: Utilities/Water $50 Student loan $11,000 Utilities/Cable $75 (Jamie is still a full-time student, so Food $135 no payments are required on the loan Gas/Maintenance $140 until after graduation) Credit card payment $0 Acme Home Goods (Washer/dryer $1,650 Acme Home Goods $41 and refrigerator) Local Home Furnishings (Sofa $1,750 Local Home Furnishings $46 set) Big Box Store (52" LED HDTV) $1,150 Big Box Store $29 Automobile, Education, Personal, and Installment Loans Financial Institution or Account Number Description Current Balance Monthly Payment Student loan Charge Accounts and Credit Cards Financial Institution or Account Number Current Balance Monthly Payment Description Acme Home Goods Local Home Furnishings Big Box Store Other Loans (Overdraft Protection, Home Equity, Life Insurance Loan)
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter6: Using Credit
Section: Chapter Questions
Problem 3FPE
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Question
Transcribed Image Text:Jamie Lee wants to determine if she can afford the monthly payments for all of her purchases before she completes the applica
process. Use the information below to determine her debt payment-to-income ratio.
Current Financial Situation
Assets:
Income:
Checking account
$1,900
Savings account
$7,400
Gross monthly salary
Net income
$2,850
$2,195
Emergency fund savings account
$2,900
Monthly Expenses:
IRA balance
$430
Rent obligation
$370
Car
$3,000
Utilities/Electric
$80
Liabilities:
Utilities/Water
$50
Student loan
$11,000
Utilities/Cable
$75
(Jamie is still a full-time student, so
Food
$135
no payments are required on the loan
Gas/Maintenance
$140
until after graduation)
Credit card payment
$0
Acme Home Goods (Washer/dryer
$1,650
Acme Home Goods
$41
and refrigerator)
Local Home Furnishings (Sofa
$1,750
Local Home Furnishings
$46
set)
Big Box Store (52" LED HDTV)
$1,150
Big Box Store
$29
Automobile, Education, Personal, and Installment Loans
Financial Institution or
Account Number
Description
Current Balance
Monthly Payment
Student loan
Charge Accounts and Credit Cards
Financial Institution or
Account Number
Current Balance
Monthly Payment
Description
Acme Home Goods
Local Home Furnishings
Big Box Store
Other Loans (Overdraft Protection, Home Equity, Life Insurance Loan)
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