Question

Your gross pay is $1,843.45. Your involuntary deductions are FICA (7.65%), federal withholding (9%), and state withholding (6.5%). How much are you allowed for housing and fixed expenses? (1 point)$516.17
$663.64
$510.01
$396.68

Answer 1

Did you try to change percents to decimal equivalents, and multiply.

1843.45 - .0765 *1843.45 - .09*1843.45 - .065 *1843.45

Answer 2

None of the answers match that, so I am probably doing something wrong. Do you have a formula from a book to use?

Answer 3

No, the only slight thing they gave us is to never go over 36% on housing/expenses

Answer 4

ok so the net income (the money you can take home after taxes etc)
is
1843.45 - .0765 *1843.45 - .09*1843.45 - .065 *1843.45 =1416.691325

now take 36% of that

Answer 5

ok now it matches one of the solution

Answer 6

Alright.. So 510.01?

Answer 7

Could you help me with another problem or so? I can open it in a different thing.

Answer 8

we can do it here

Answer 9

http://i.gyazo.com/ed9caaa60eb1331d203d080636b10c15.png

Answer 10

was 510 correct?

Answer 11

I won't know until I submit it, and I'm not done yet.

Answer 12

My apologies.

Answer 13

we need the definition of debt ratio

Answer 14

what book are you studying from

Answer 15

Uh, I don't know. I'm online schooled.

Answer 16

do you have any notes on 'debt ratio'

Answer 17

One moment, let me look. Sorry.

Answer 18

"If you have five credit cards, each of them with a $1,000.00 credit limit, you have $5,000.00 of available credit. Now assume you have charged a total of $5,000.00 on them. That means you have a 1:1 ratio, or 100% debt. Big problem! That tells the credit reporting agencies that you're completely maxed out, and it's unlikely a bank or credit card company will extend you any loans until you get your finances under control."

Answer 19

So far this is all I've seen on it, throughout the entire unit.

Answer 20

so the ratio we are using is the balance-to-limit ratio
that means if you have 100 dollar balance and a 1000 dollar credit card limit
you have 100/1000 = .10 or 10% ratio.

In our problem the total debt is 1800 + 2600 + 3500 = 7900
the limit is also 7900. so we start with balance to limit of 100%
paying off and closing any of the three credit cards will still leave the other two credit balance at maximum , so the debt remains the same

Answer 21

because you will still have 100 % debt on the other two cards

Answer 22

..Alright, I understand now! Thank you very much.