Question

It is recommended that your monthly credit card payments never amount to more than 20% of your net take-home income. If Chris earns $3,600 per month, what is the most he should make in credit card payments per month to the bank?

Answer 1

Chris should make no more than $720 in credit card payments per month, which represents 20% of his net take-home income of $3,600.

Step-by-step explanation:

The question asks what the maximum monthly credit card payment should be for Chris, given his monthly net take-home income and that the recommended maximum credit card payment is 20% of that income. To calculate this, we'll consider Chris's take-home pay, which is $3,600 per month. We'll use the following formula:

Maximum payment = Net take-home income × Recommended percentage

In this case:

Maximum payment = $3,600 × 20%

Maximum payment = $3,600 × 0.20

Maximum payment = $720 per month

So, the most Chris should make in credit card payments per month to the bank, based on the 20% recommendation, is $720.