7. Jordan wants a new phone. He makes $5400 a year at his part time job, and has a $72 monthly car payment. How much could he afford to pay, per month, on a new phone and maintain a safe debt to income ratio?

7. Jordan wants a new phone. He makes $5400 a year at his part time job, and has a $72 monthly car payment. How much could he afford to pay, per month, on a new phone and maintain a safe debt to income ratio?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter6: Building And Maintaining Good Credit

Section: Chapter Questions

Problem 1DTM

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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7. Jordan wants a new phone. He makes $5400 a year at his part time job, and
has a $72 monthly car payment. How much could he afford to pay, per month,
on a new phone and maintain a safe debt to income ratio?

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