Question: Please provide a step by step solution Never borrow more than 20% of your yearly net income (not including your housing or mortgage debt) Monthly

Please provide a step by step solution

Never borrow more than 20% of your yearly net income (not including your housing or mortgage debt)

Monthly payments should not exceed 10% of your monthly net income

1.Martine and Jean have a combined monthly net income of $3,000. Their fixed monthly expenses include $220 for Martine's student loan payment, and $82 for the dishwasher they bought last month. Martine and Jean would like to buy a new car.

How much can they currently afford for monthly car payments and still maintain a safe debt load? (2 marks)

2 Manuel has a monthly net income of $2,100. His fixed monthly expenses include $68 for the furniture bought last month and a car payment of $167.

Are Manuel's expenses within a safe debt load? (2 marks

3After paying rent, Angelina has a monthly net income of $450. She wants to buy a new bike and pay for it using a credit card.

What is the largest monthly payment she can commit to making? (2 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The article Housework around the World (USA Today, September 15, 2009) included the percentage of women who say their spouses never help with household chores for five different countries. a. Display...

From the Case study: Joanne and Warwick, in Step 2/3 'Total financial commitments amount = min($1,335, $2,500) = $1,335 per month, Should it not be $2500-1335 = $1165, how do you determine the answer...

Answers must be between 200-250 words only. Need for the answer to stay within the guidelines and not be copied directly from another source. Universal Life Policy Worksheet FIN/428 Version 1...

Read the following sample life insurance policies: Universal Life Whole Life Complete the worksheets for each sample policy. Universal Life Policy Worksheet FIN/428 Version 1 University of Phoenix...

please help me in my project This report is generated under the following assumptions: 1) Eric and Sarah, you both remain employed at a similar rate of compensation after taxes. 2) Sarah retums to...

I need help with these 10 questions. Please make sure you are familiar with these types of problems. Thank you 1) Toni's Typesetters is analyzing a possible merger with Pete's Print Shop. Toni's has...

please help me in 70 dollars to do this assignment iin APA style referencing Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning...

wertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuiopasdfgh jklzxcvbnmqwertyuiopasdfghjklzxcvb Business Negotiation nmqwertyuiopasdfghjklzxcvbnmqwert The Successful buy out - Part 2...

1.Please list and discuss ten of the proposals to raise the U.S. household's savings rate over the next 25 years.Which three proposals may be the most powerful, in your opinion?Why? 2.Earlier we...

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

See page 129- 137 on attachment for more details there are five steps to the project. Step 1: Create the loan amortization schedule for the property. Step 2: Create the depreciation schedule. Step 3:...

One gaseous feed stream (1 liter/min) containing A (CA0= 0.01 mol/liter) and a second gaseous feed stream (3 liters/min) containing B (CB0= 0.02 mol/liter) enter a mixed reactor 1 liter in volume and...

The Ethics of Belief" by W.T Clifford. Write an essay that describes his attitude towards belief. Be sure to address the following issues: 1. Why does Clifford say what we believe is not merely a...

What must Arica , who is a tax preparer , demostrate to avoid a penalty for taxing an unreaseanable positicion that caued a libility understarement ona reburn she filled this year. gih sven that she...

Flu cases per school this past flu season in the Remulak school system *(n = 500) were 15 per week. For the entire state, the weekly average was 16, and the standard deviation was 15.1. Are the kids...

Q. What are the Top N games based on the number of users rated and what is the average UserScore for these games? Hint: You could create a bar chart using UserCount, Name and Average UserScore in...

Create a copy of this population frame (Aegis Data). Paste the population frame to a new sheet. Rename this new sheet to Part 5. Use Part 5 sheet to answer this part of the question Is there a...

You participated in a brainstorm to gather information for an update to your CIO. Consider your findings of vendor options and the process for a health care information system as you begin your...

Purpose ACCT 207 PROJECT Adjusting Journal Entries and Financial Statements Improve your understanding of the relationships between the financial statements; increase your confidence in preparing and...

Using a periodic review model, given an average daily demand of 9 units, a standard deviation of daily demand of 1 days, 9 days between inventory reviews, 3 days lead time, 49 units of inventory on...

The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.

The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.

4. Based on a message you have recently received, analyse it in relation to its three components: a. the information component, b. its relational component and c. its hierarchical component.