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 $960 per month. Her employer deducts a total of $170 for taxes from her monthly pay. Madeline also pays $115 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $170 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.) With college loan Without college loan Debt Payments-to- Income Ratio
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 $960 per month. Her employer deducts a total of $170 for taxes from her monthly pay. Madeline also pays $115 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $170 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.) With college loan Without college loan Debt Payments-to- Income Ratio
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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Question
![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 $960 per month. Her employer deducts a total of $170
for taxes from her monthly pay. Madeline also pays $115 on several credit card debts
each month. The loan she needs for chiropractic school will cost an additional $170 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.)
With college loan
Without college loan
Debt Payments-to-
Income
Ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0a6d064-d60f-4f54-aa81-ca6ff52cfb9a%2Fda3add6f-8f48-412f-a03d-0fef3a8ceb74%2Fq40iljq_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 $960 per month. Her employer deducts a total of $170
for taxes from her monthly pay. Madeline also pays $115 on several credit card debts
each month. The loan she needs for chiropractic school will cost an additional $170 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.)
With college loan
Without college loan
Debt Payments-to-
Income
Ratio
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