Chapter 6 Financial Planning Exercise 4 Evaluating debt safety ratio

Use Worksheet 6.1. Alyssa Clark is evaluating her debt safety ratio. Her monthly take-home pay is $2,990. Each month, she pays $410 for an auto loan, $140 on a personal line of credit, $80 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Alyssa's outstanding debts.

Calculate her debt safety ratio. Round the answer to 1 decimal place. Enter debt safety ratio as a percentage. %

Given her current take-home pay, what is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 10.0%? Round the answer to the nearest dollar. $

Given her current monthly debt payment load, what would Alyssa's take-home pay have to be if she wanted a 10.0% debt safety ratio? Round the answer to the nearest dollar. $