Rafael takes home $4200 per month. what is the maximum amount he can

spend each month on loan and credit card payments without being in danger

of credit overload?

A bad debt ratio of more than 10% is considered high and often is a sign that you are in danger of credit overload. So, I'd $420 is the maximum amount he can spend on credit card payments and loan each month.

Step-by-step explanation:

Let's clear this with an example:

Rafael makes $4,200 a month and let's say he spends $550 on credit card payments and $450 on an loans.

Then, the ratio calculation would be $1000 / $4,200 = 0.24

Multiply that by 100 for a debt-income-ratio of 24%.

In this example, Rafael spends almost a quarter of his income on debt which is considered bad debt in economics.

answer: yes, since the line has a steeper rate of change than the exponential the y-values will be greater and they will only intersect one time.