Alex's monthly take home pay is $2500. what is the maximum bad debt payment he can maintain without being in credit overload? a $250 b $325 c $475 d $500

Answer with explanation:

Alex monthly income = $ 2500

Usually ,it depends on your income how much debt you can bear and repay it.There are different rules to calculate amount of money you can use for debt purposes, one is , which states that 28% of your income should be used for housing expenses and 36% for debt Purposes.And another one is 30% rule , which states 30% of your monthly income is used for debt purposes.

36 % of $ 2500

Also, 30% of $ 2500

So, maximum bad debt payment that Alex can maintain without being in credit overload among four options given is :

Option D : $ 500

step-by-step explanation:

30% of $420 is 0.30($420) = $126 and $420 + $126 = $546.

or, 130% of $420 is 1.3($420) = $546.

notice that this is not the $600 original list price with which we started.

why doesn't this work?

the method does not work because 30% of $420 is not the same amount as the 30% of $600. it may seem obvious when stated this way, but it is a very common error made on problems of this type. we cannot just use the same percent and get back to the original amount because we are taking that percent of a different value.

to work problems of this type correctly, it is generally best to write an equation for the situation and then solve.

example: since (100% – 30%)(original price) = (sale price)

70% of the   (original price) is $420.

0.7x   = 420

equation image indicator

x = 600

the original cost was $600.

we may also solve this problem using the two-step method. working the problem in two steps requires us to use more algebra skills. we have to know that x = 1x (identity property of multiplicationtext annotation indicator) and that 1x – 0.3x = 0.7x (subtracting like terms). then we solve the problem as follows:

(original price) – 30%(original price) = sale price

x – 0.3x = 420

0.7x = $420

equation image indicator

x = 600

the original cost was $600.  

note that with both of the above methods we do obtain the correct original amount.

example: after a 5% pay raise, hermione is earning $22,680 per year. what was she earning before the pay raise?

105% of (original salary) = current salary

1.05x = 22,680

equation image indicator

x = 21,600

hermione earned $21,600 per year before the pay raise.

this is an example so maybe you will get how to at least do it!

horizontal translation of 2 units in the positive x direction

followed by

vertical translation of 3 units in the positive y direction