A college drop out owes $42,000. Her loan has an interest rate of 6% a year and
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Question:
A college drop out owes $42,000. Her loan has an interest rate of 6% a year and a ten year maturity. Determine her monthly payment. She currently has a job that pays $10 an hour for 160 hours a month. What percentage of her monthly before tax pay goes to paying off her loan? Use the table below for the following part: What percentage of her after tax income per year goes to paying her total loan payments for one year?
Single Filing Status | |
Income between | Marginal tax rate |
$0 to $8,700 | 10% |
$8,700 to $35,350 | 15% |
$35,350 to $85,650 | 25% |
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Posted Date: