Chelsea Menken, of Providence, Rhode Island, recently graduated with a degree in food science and now...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/664960ed81a48_972664960ecd37ec.jpg)
Transcribed Image Text:
Chelsea Menken, of Providence, Rhode Island, recently graduated with a degree in food science and now works for a major consumer foods company earning $70,000 per year with about $54,000 in take- home pay. She rents an apartment for $1,100 per month. While in school, she accumulated about $38,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $9,000. She has been making the minimum payments on the account of about $240 a month. She has assets of $14,000. a. Calculate Chelsea's debt payments-to-disposable income ratio. Round your answer to two decimal places. % b. Calculate Chelsea's debt-to-income ratio. Round your answer to two decimal places. % c. Comment on Chelsea's debt situation and her use of student loans and credit cards while in college. The input in the box below will not be graded, but may be reviewed and considered by your instructor. Do the Math 6-3 A Recent Graduate's Debt Status Chelsea Menken, of Providence, Rhode Island, recently graduated with a degree in food science and now works for a major consumer foods company earning $70,000 per year with about $54,000 in take- home pay. She rents an apartment for $1,100 per month. While in school, she accumulated about $38,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $9,000. She has been making the minimum payments on the account of about $240 a month. She has assets of $14,000. a. Calculate Chelsea's debt payments-to-disposable income ratio. Round your answer to two decimal places. % b. Calculate Chelsea's debt-to-income ratio. Round your answer to two decimal places. % c. Comment on Chelsea's debt situation and her use of student loans and credit cards while in college. The input in the box below will not be graded, but may be reviewed and considered by your instructor. Do the Math 6-3 A Recent Graduate's Debt Status
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Your examination of the records of Wilson Ltd, which was established on 1 March 2015, reveals that the accountant debited the Land, Buildings and Equipment account with the following items (ignore...
-
The generic floating-points format for a DSP microprocessor is the following: The value of the number X is given by is the most negative twos-complex value. Determine the range of positive and...
-
Suppose that we wish to compute the inverse and log-determinant of the matrix \[ \mathbf{I}_{n}+\mathbf{U} \mathbf{U}^{\top} \] where \(\mathrm{U}\) is an \(n \times h\) matrix with \(h \ll n\). Show...
-
Most firms attempt to pay their accounts payable within the discount period to take advantage of the discount. Why is that normally a sound financial move? LO 8
-
Telephone inquiries of 100 IRS customers are monitored daily at random. Incidents of incorrect information or other non-conformities (such as impoliteness to customers) are recorded. The data for...
-
Austin Fisher contributed land, inventory, and $ 3 0 , 0 0 0 cash to a partnership . The land had a book value of $ 6 8 , 0 0 0 and a market value of $ 1 2 3 , 0 0 0 . The inventory had a book value...
-
Use the frequency distribution to estimate the mean score of the females. How does this compare to the average of 74.4 found from the raw data? Test Scores (Females) | Frequency (f) | Class Midpoint...
-
Find the Fourier sine series of f(x) = ex in
-
Find the half-range sine series of f(x) = x 12-x 04X41 1x2
-
Find the half-range cosine series of f(x) = sinx in the interval (o,) and hence deduce that 477 JT= 4 1-1+1-1+ 3 5 7 L=
-
Find the Fourier series of f(x) = x, 0 < x <2 where f(x+2) = f(x)
-
Give lo Examples of GRIHA rated buildings In India Examples of JGBC rated buildings in India? and s
-
Why is it important to check the scale of each y-axis when comparing the pesticide metabolite levels across the three graphs? It is important to check the scale of each y-axis because different units...
-
CLASS PERIO Solving Linear Equations: Variable on Both Sides Solve each equation. 1) 6r+ 7 = 13 + 7r 3) -7x-3x+2=-8x-8 5)-14 +66+7-26=1+5b 7) n-3n = 14-4n 2) 13-4x=1-x 4)-8-x= x - 4x 6)n+2=-14-n 8)...
-
Karanga Company purchased land containing an estimated 20 million tons of ore for a cost of $6,600,000. The land without the ore is estimated to be worth $1,200,000. The company expects that all the...
-
The airline industry was hit particularly hard after the 9/11 attacks on the World Trade Center in 2001. In 2002, Southwest Airlines, one of the healthier airlines companies, made a decision to...
-
Gent Manufacturing Company purchased a robot for $720,000 at the beginning of year 1. The robot has an estimated useful life of four years and an estimated residual value of $60,000. The robot, which...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App