Question: Use Worksheet 6.1 . Alyssa Clark is evaluating her debt safety ratio. Her monthly take-home pay is $3,700. Each month, she pays $280 for an

Use Worksheet 6.1. Alyssa Clark is evaluating her debt safety ratio. Her monthly take-home pay is $3,700. Each month, she pays $280 for an auto loan, $130 on a personal line of credit, $60 on a department store charge card, and $100 on her bank credit card. Complete Worksheet 6.1 by listing Allysa's outstanding debts.

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

2. 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. __________$

3. 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. ___________$

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 Finance Questions!