Question

Richard's annual take-home pay is $28,500. What is the maximum amount that he can spend per month paying off credit cards and loans and not be in danger of credit overload?

A. $2850
B. $475
C. $570
D. $2600

Answer 1

Its 475. Apex users ;)

Answer 2

The correct answer to this question would be alternative B)"$475."

In order to make sure he doesn't get in financial trouble, the best would be to use at max 20% of his monthly income to pay in credit card and loan debts.

As he makes an annual amount of $28,500, his monthly income is about $2,375. 20% of that amount would be $475, as stated in alternative B, making it the correct one.