Question

Sarah takes home $33,000 per year from her job as a computer repair person. Her only debt obligations are a car loan payment of $395 and a credit card payment of $110 every month Help Sarah go through the steps to see if she is in danger of credit overload. Part I: How much money does Sarah take home per month?Part II: What is 20% of Sarah's monthly take home pay? Part III: How much does Sarah spend in total every month towards paying off her debt? Part IV: Which is greater, 20% of Sarah's monthly take home pay or the amount Sarah spends in total every month towards paying off her debt?

Answer 1

To find out how much money sarah takes per month we divided her total income by 12.

`(33000)/(12)=2750`

Therefore, Sarah takes home $2750 per month.

To find out Sarah monthly for her home we multiply his total salary per month by .20:

`2750\cdot0.20=550`

Therefore, he pays $550 for her gome.

The total amount he pays of debt is $505.

The monthly take home pay is greater than the total amount she pays per month.