Question

Logan's only debt obligations are a car loan payment of $512 and a credit card payment of $70 every month. What is the minimum amount of money he must take home every month in order to avoid being in danger of credit overload?

Answer 1

$ 2910

Explanation:

Answer 2

The most used payment plan to avoid being in debt today is the 20% payment plan. In this payment , you divide your income into several parts.
20% for paying up debts, 10 % for savings, and 70% for everything else.

So, assuming that x is the minimum amount of money, we know that

$ 512 + $70 = 20% . X

$ 582 = 0.2 . x

$ 582 / 0.2 = x

x = $ 2910