Noel and Herman need to replace Noel's car. But with the furniture and appliance payments, the credit
card bills, and Herman's car payment, they are uncertain if they can afford another payment. The auto-financing representative has asked, "What size payments are you thinking of?" Current payments (excluding the potential cost of Noel's car) total $374 of their $2,570 combined monthly take-home pay. Calculate the debt limit ratio to help them decide about the car purchase and answer the question, "What size payments are you thinking of?" by first assuming a 15 percent limit and then "stretching" it to a 20 percent limit.
Based on a 15% limit, the maximum car payment that Noel and Herman can afford for a car for Noel is $____. (Round to the nearest cent.)
based on 20% limit etc.. ?