Calculate debt payments-to-income ratio without college loan

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1. 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 $1010 per month. Her employer deducts a total of $190 for taxes from her monthly pay. Kim also pays $90 on credit card debt each month. The loan she needs for chiropractic school will cost an additional $100 per month.

Calculate her debt payments-to-income ratio without college loan. Remember to convert your answer to a percentage.

2. 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 $2730 per month. Her employer deducts a total of $180 for taxes from her monthly pay. Kim also pays $90 on credit card debt each month. The loan she needs for chiropractic school will cost an additional $120 per month.

Calculate her debt payments-to-income ratio with college loan. Don't forget to convert your answer to a percentage.

Reference no: EM131330580

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