To determine if someone is in danger of credit overload, we need to consider their total monthly debt obligations and compare them to a given threshold. In this scenario, the individual's monthly debt obligations include a car loan payment and a mortgage payment.
Here's the step-by-step solution:
1. Identify the monthly payments:
- Car loan payment: [tex]$750
- Mortgage payment: $[/tex]980
2. Calculate the total monthly debt obligations:
- Total monthly debt = Car loan payment + Mortgage payment
- Total monthly debt = [tex]$750 + $[/tex]980
- Total monthly debt = [tex]$1730
3. Compare the total monthly debt with the threshold:
- The threshold is $[/tex]1040.
- We need to check if the total monthly debt ([tex]$1730) is greater than the threshold ($[/tex]1040).
4. Conclusion:
- Since [tex]$1730 (total monthly debt) is greater than $[/tex]1040 (threshold), the individual is in danger of credit overload.
Given this explanation, the correct answer is:
D. Yes, because the sum of [tex]$750 and $[/tex]980 is greater than $1040.
