Question

Adele is looking to get a bank loan for some new appliances. Her net monthly income is $2,000, and she has the following monthly expenses: $500 rent, $100 car payment, $100 student loan payment, $50 car insurance payment, $100 credit card payment, $400 food, $50 gasoline, $100 phone service, $100 Internet service, and $500 retirement fund contribution.​ Adele's fixed payments as a percentage of her net monthly income are:

Answer 1

42.5%

Step-by-step explanation:

A fixed-rate payment is an installment loan with an interest rate that cannot vary during the life of the loan. The payment amount also will remain the same, though the proportion that goes to interest and principal may vary.