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5 March, 11:22

Shelby's annual take-home pay is $51,000. What is the maximum amount that she can spend per month paying off credit cards and loans and not be in danger of credit overload?

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  1. 5 March, 13:34
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    Given:

    $51,000 take-home pay of Shelby per year

    to determine the maximum amount that she can spend per month, we can use a formula from economics:

    A = P (i (1+i) ^n) / (1+i) ^n - 1)

    Assume that the interest rate of the credit card is 4%

    P = amount per month = $51,000 / 12 = $4250

    Substitute and solve for A.
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