Use the following table to help answer the question below.

\begin{tabular}{|c|c|c|c|c|}
\hline State & Single-earner & 2-person & 3-person & 4-person \\
\hline Florida & [tex]$\$[/tex] 41,226[tex]$ & $[/tex]\[tex]$ 52,259$[/tex] & [tex]$\$[/tex] 58,574[tex]$ & $[/tex]\[tex]$ 69,009$[/tex] \\
\hline Georgia & [tex]$\$[/tex] 40,691[tex]$ & $[/tex]\[tex]$ 55,258$[/tex] & [tex]$\$[/tex] 61,104[tex]$ & $[/tex]\[tex]$ 68,502$[/tex] \\
\hline Missouri & [tex]$\$[/tex] 39,645[tex]$ & $[/tex]\[tex]$ 51,568$[/tex] & [tex]$\$[/tex] 60,371[tex]$ & $[/tex]\[tex]$ 71,059$[/tex] \\
\hline Texas & [tex]$\$[/tex] 38,940[tex]$ & $[/tex]\[tex]$ 55,859$[/tex] & [tex]$\$[/tex] 59,222[tex]$ & $[/tex]\[tex]$ 66,381$[/tex] \\
\hline Virginia & [tex]$\$[/tex] 48,362[tex]$ & $[/tex]\[tex]$ 65,122$[/tex] & [tex]$\$[/tex] 74,151[tex]$ & $[/tex]\[tex]$ 85,939$[/tex] \\
\hline
\end{tabular}

A family of 2 that has a monthly income of [tex]$\$[/tex] 4,650$ is thinking about filing bankruptcy. In order to file for Chapter bankruptcy, in which of the following states could the family be living?

A. Georgia or Florida
B. Florida or Texas
C. Georgia or Virginia
D. Virginia or Texas

Please select the best answer from the choices provided.



Answer :

To determine in which states a family of 2 with a monthly income of [tex]$4,650 could be eligible for filing Chapter bankruptcy based on their income being below the state median income threshold, let's follow these steps: 1. Calculate the Annual Income: The monthly income of the family is $[/tex]4,650. To find the annual income, multiply the monthly income by 12.
[tex]\[ 4,650 \times 12 = 55,800 \][/tex]
The family's annual income is [tex]$55,800. 2. Compare the Annual Income with State Median Incomes: We need to compare this annual income with the median incomes listed in the table for a family of 2 in each state. - Florida: $[/tex]52,259
- Georgia: [tex]$55,258 - Missouri: $[/tex]51,568
- Texas: [tex]$55,859 - Virginia: $[/tex]65,122

3. Determine Eligibility:
A family qualifies for Chapter bankruptcy if their income is less than the median income for a family of 2 in that state. Let's compare:

- Florida: [tex]$55,800 > $[/tex]52,259 (Not Eligible)
- Georgia: [tex]$55,800 > $[/tex]55,258 (Not Eligible)
- Missouri: [tex]$55,800 > $[/tex]51,568 (Not Eligible)
- Texas: [tex]$55,800 < $[/tex]55,859 (Eligible)
- Virginia: [tex]$55,800 < $[/tex]65,122 (Eligible)

4. Identify the Eligible States:
From the comparison, the states where the family's income is below the median are Texas and Virginia.

5. Choose the Correct Option:
Given the eligible states (Texas and Virginia), the correct answer matches the option:
[tex]\[ d. \text{Virginia or Texas} \][/tex]

Therefore, the correct answer is:
d. Virginia or Texas