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Calculate debt safety ratio

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Chloe Young is evaluating her debt safety ratio. Her monthly take-home pay is $3,200. Each month, she pays $250 for an auto loan, $120 on a personal line of credit, $95 on a department store charge card, and $95 on her bank credit card.

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

Question 2: Given her current take-home pay, what is the maximum amount of monthly debt payments that Chloe can have if she wants her debt safety ratio to be 12.5%? Round the answer to the nearest dollar.

Question 3: Given her current monthly debt payment load, what would Chloe's take-home pay have to be if she wanted a 12.5% debt safety ratio? Round the answer to the nearest dollar.

Reference no: EM132490915

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