Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Kim 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 $1,070 per month. Her employer deduct $210 for taxes from her monthly pay. Kim also pays $128 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $85 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.)

Sagot :

jepessoa

Answer:

Even with the student loan, Kim's debt to income ratio is lower than 20%, so she should get the loan and attend chiropractic school.

Explanation:

debt to income ratio = total debt payments / total gross income

debt to income ratio without student loan = $128 / $1,070 = 11.96%

debt to income ratio with student loan = ($128 + $85) / $1,070 = 19.91%

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.