Calculate her debt payments-to-income ratio

Assignment Help Finance Basics

Reference no: EM131486062

Question: Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Madeline is living at home and works in a shoe store, earning a gross income of $820 per month. Her employer deducts a total of $145 for taxes from her monthly pay. Madeline also pays $95 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $120 per month. Help Madeline make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.)

Reference no: EM131486062

Questions Cloud

What is cognitive summary-what are the two types of quality : What is cognitive summary? How do successful negotiators avoid projective cognitive summary ? What are the two types of quality?

Prepare a memorandum to the audit manager : Identify and discuss why the given situation represents a risk - Identify how the audit plan will be affected by the risks.

Staff become more culturally competent : Read the case story about how a Nurse Manager helps her staff become more culturally competent

Cost analysis of a falls-prevention program : A problem we have in the hospitals are the high number of falls resulting in injury because of short staffing.

Calculate her debt payments-to-income ratio : Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Madeline is living at home.

Why is important to build database of client sources : Why is important to build database of client sources? Why is it important to develop professional relationships? When is it not appropriate to contact a person.

Two types of benefit by implementing lean approach : What are the two types of benefit by implementing a lean approach? How does the break-even point change after implementing a lean approach?

Possibility of forming international joint venture : Blaine and Solera are discussing the possibility of forming international joint venture. Solera is very optimistic about future revenues.

How waiting time is affected by variability and utilization : The following two scenarios describe how the waiting time is affected by variability and utilization

User Account

All Pages