Question

Terrence's annual take-home pay is $45,000. 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?
OA. $3750.00
B. $937.50
C. $3000.00
D. $750.00

Answer 1

$3750

Explanation:

o determine the maximum amount Terrence can spend per month without being in danger of credit overload, we can use the following steps:

1. Start with Terrence's annual take-home pay: $45,000.

2. Divide the annual take-home pay by 12 to find the monthly amount: $45,000 / 12 = $3750.

3. This means Terrence can spend a maximum of $3750 per month on credit card payments and loans without risking credit overload.

Therefore, the correct answer is A. $3750.00.