Question

when considering how much debt to incur in student loans, you learn that it is wise to keep your student loan payment to 8% or less of your starting monthly income. suppose you anticipate a starting annual salary of $36,000. set up and solve an inequality that represents the amount of monthly debt for student loans that would be considered manageable. hint: if your annual salary is $36,000, how much is your monthly income? choose the answer which correctly solves this inequality for how much your monthly student loan payment should be.

Answer 1

The Monthly Income is $3,000

The inequality representing the manageable amount of monthly debt for student loans would be

Step-by-step explanation:

When considering how much debt to incur in student loans and keeping your student loan payment to 8% or less of your starting monthly income, with an anticipated starting annual salary of $36,000, you would first calculate your monthly income by dividing the annual salary by 12 months.

This gives us:

Monthly Income = Annual Salary / 12 = $36,000 / 12 = $3,000

Then, we set up the inequality to determine the maximum manageable monthly student loan payment by calculating 8% of the monthly income:

Monthly Student Loan Payment ≤ 0.08 * Monthly Income = 0.08 * $3,000 = $240

Therefore, the inequality representing the manageable amount of monthly debt for student loans would be:

Monthly Student Loan Payment ≤ $240