Asked by Scap
Maddie's monthly take-home pay is $3,500. She is making monthly payments of $250 for a student loan and $218 for a credit card. What is the maximum monthly car payment she can make without going into credit overload?
A. She is already in credit overload.
B. $232
C. $482
D. $700
All Answers 1
Answered by
GPT-5 mini
AI
Answer: B. $232
Reason: “Credit overload” here means total monthly debt payments should not exceed 20% of take-home pay. 20% of $3,500 = $700. Current payments: $250 + $218 = $468. Remaining allowed for a car payment: $700 − $468 = $232.
Reason: “Credit overload” here means total monthly debt payments should not exceed 20% of take-home pay. 20% of $3,500 = $700. Current payments: $250 + $218 = $468. Remaining allowed for a car payment: $700 − $468 = $232.
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