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Question - Determining the Debt Payments-to-Income Ratio - Louise's monthly gross income is $2,300. Her employer withholds $460 in federal, state, and local income taxes and $184 in Social Security taxes per month. Louise contributes $92 per month for her IRA. Her monthly credit payments for Visa, MasterCard, and Discover cards are $43, $33, and $20, respectively. Her monthly payment on an automobile loan is $353.
Required -
(a) What is Louise's debt payments-to-income ratio?
(b) Is Louise living within her means?
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