Questions: 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? A. 2328 B. 582 C. 2910 D. 2560

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?
A. 2328
B. 582
C. 2910
D. 2560

Transcript text: 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? A. $\$ 2328$ B. $\$ 582$ C. $\$ 2910$ D. $\$ 2560$

Solution

Solution Steps

Step 1: Identify the total monthly debt obligations

Logan has two monthly debt obligations:

Car loan payment: $ \$512 $
Credit card payment: $ \$70 $

The total monthly debt is: \[ \$512 + \$70 = \$582 \]

Step 2: Determine the minimum take-home pay to avoid credit overload

To avoid credit overload, Logan's take-home pay should be at least equal to his total monthly debt obligations. Therefore, the minimum take-home pay required is: \[ \$582 \]

Step 3: Compare the result with the given options

The calculated minimum take-home pay is $ \$582 $, which corresponds to option B.