Question

Case 1: Josh Sammons has just graduated from high school and found a

full-time job that earns him $20,000 per year. He wants to move out of his
parents' house. To do this, he needs transportation to his job, since there is
no public transportation in his town. His parents will let him have his
bedroom furniture and supplies for his kitchen and bathroom. He wants to
buy a car, some furniturde for his living room and a table and chairs for the
dining area. Calculate Josh's safe debt

Answer 1

Josh can safely carry $4,000 in debt ($20,000 x .20). Since his

monthly net is $1,666.67 ($20,000/12), his monthly payments should not exceed

$166.67