Question

Xi-ling has a net income that is 5% of her monthly salary of $2,315. Xi-ling would like to keep a net income of $50 and put any additional money towards paying down debt. How much more can Xi-ling put towards paying down debt each month? a. $55. 75 b. $65. 75 c. $115. 75 d. $165. 75.

Answer 1

Xi-Ling focussed on her debt management by setting aside a part of net income in paying down the debts. The amount that Xi-Ling put towards the debt is $65.75.

What is Debt Management?

Debt management is a tool that facilitates keeping the debt under control through planning and budgeting. It helps in clearing the problem of debt at an affordable pace.

Xi-Ling has a monthly salary of $2,315 out of which 5% is her net income. The net income therefore is:

$\begin{aligned} \rm Net \:Income &=\rm Salary \times 5\%\\\\&= \ 2,315 \times 5\%\\\\&= \ 115.75\end$

Out of the net income of $115.75, she keeps aside $50 and uses the rest in paying down her debts. Therefore, the amount used for debts is:

$\begin{aligned} \rm Amount\:used\:in\:paying\:debts &= \ 115.75 -\ 50\\\\&= \ 65.75\end$

Hence the amount Xi- Ling put towards paying down the debts is $65.75.

Learn more about debt management here:

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