Shelby's annual take-home pay is $51,000. What is the maximum amount that she can spend per month paying off credit cards and loans and not be in danger of credit overload?

Given:

$51,000 take-home pay of Shelby per year

to determine the maximum amount that she can spend per month, we can use a formula from economics:

A = P (i (1+i) ^n) / (1+i) ^n - 1)

Assume that the interest rate of the credit card is 4%

P = amount per month = $51,000 / 12 = $4250

Substitute and solve for A.