Question: Chapter 6- Question 4 Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school.

Chapter 6- Question 4

Kim Lee is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $1,570 per month. Her employer deducts $159 for taxes from her monthly pay. Kim also pays $178 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $198 per month. Help Kim make her decision by calculating her debt paymentstoincome ratio with and without the college loan. (Remember the 20 percent rule.)

Chapter 6- Question 4 Kim Lee is trying to decide whether she

% Debt payments-to-income ratio with college loan Debt payments-to-income ratio without college loan

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