Taking out a motorcycle loan. Kevin Jones, of Elon, North Carolina, is single and recently graduated from law school. He is employed and earns $9000 per month, an awesome salary for someone only 26 years old. He also has $1800 withheld for federal income tax, $500 for state income taxes, $700 for Medicare and Social Security taxes, and $230 for health insurance every month. Kevin has outstanding student loans of almost $80000 on which he pays about $900 per month and a 0% loan on an auto loan payment of $300 on a ford fusion hybrid her purchased new during law school. He is considering taking out a loan to buy a Kawasaki motorcycle.
What is kevins debt payments to disposable income ratio?
Based on your answer to part (a), how would you advise kevin about his plan.