Personal Finance 1st Edition by Jack R. Kapoor

Exercise 33

Credit Reduces Future Income. The disposable income from your part-time job in 2010 and 2011 is $12,000. In 2010, you borrow $500 at 18 percent interest. You repay your loan with interest in 2011. How much would you have available for spending in 2011? (Obj. 3)

Step 1 of 3

Given:

Disposable income, in 2010 and 2011	12,000
Fund borrowed in 2010	500
Rate of interest	18percent