3. James' monthly gross income is $3,420. He pays 22% of his monthly gross earnings in federal and state taxes and spends 18% of that monthly income to pay off his credit card debt. James is also paying off a student loan, which is 7% of his income per month. James found an apartment near his work that rents for $1,900 per month. Will he be able to make the payments without changing the amounts he pays towards his student loan and credit card debt?
3. James' monthly gross income is $3,420. He pays 22% of his monthly gross earnings in federal and state taxes and spends 18% of that monthly income to pay off his credit card debt. James is also paying off a student loan, which is 7% of his income per month. James found an apartment near his work that rents for $1,900 per month. Will he be able to make the payments without changing the amounts he pays towards his student loan and credit card debt?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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THIS IS FOR FINANCIAL MATHEMATICS 2, THANK YOUUUUUUUUUUUU
Transcribed Image Text:3. James' monthly gross income is $3,420. He pays 22% of his monthly gross earnings in
federal and state taxes and spends 18% of that monthly income to pay off his credit card debt.
James is also paying off a student loan, which is 7% of his income per month. James found an
apartment near his work that rents for $1,900 per month. Will he be able to make the payments
without changing the amounts he pays towards his student loan and credit card debt?
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