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Taking Out a Motorcycle Loan Kevin Jones, of Elon, North Carolina, is single and recently graduated from law school. He is em
Barrie and Inga Adlington, of Birmingham, England, have just finished putting their three daughters through college. As empty
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Answer #1

A.

Debt Payment: 1250 (900+350)

Disposable income : 5860 (9300-2000-510-710-220)

Debt Payments to disposable income ratio = > 1250/5860 = 21.33%

B. As Kevin has surplus salary income of $ 4610 per month and has age on his side, he may buy Kawasaki Motercycle.

2. Not sufficient information provided on what the question is for this para. Hence Debt Payments to disposable income ratio is calculated for this as well:

Debt Payment: 1500 (770+260+283+187) i.e. $ 18000 per annum

Disposable income : $100,000 (Tax is not assumed as no nformation given)

Debt Payments to disposable income ratio = > 18,000/100,000 = 18.0%

  

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