Homework Answers
a.
Total Debt Payment = 340 + 200 + 80 + 110 = $730
Debt Safety Ratio = 730/3,060
Debt Safety Ratio = 23.86%
b.
Debt Safety Ratio = 10%
0.10 = Debt Payment/3,060
Debt Payment = $306
c.
0.10 = 730/Monthly Pay
Monthly Payment = $7,300
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