answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SpyIntel [72]
2 years ago
8

Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, a

nd to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $39,600. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 70% of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?
Business
1 answer:
meriva2 years ago
7 0

Answer and Explanation:

The computation is shown below:

a. For the maximum amount that spend each month on mortgage payment is

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 28%

= $924

b. . For the maximum amount that spend each month on total credit obligatons

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 36%

= $1,188

c. Now the maximum amount spend for all other debt is

For monthly mortgage

= $924 × 70%

= $646.8

And, for mortgage debt

= $1,188 × 70%

= $831.60

You might be interested in
In order to do an effective job, the CSIRT needs to know who it works for and what systems it should focus on; in other words, i
Viktor [21]

Answer:

Constituency

Explanation:

CSIRT stands for  Computer Security Incident Response Team, they are a group of experts that are hired to handle all incidents that occurred within your computer system.

In CSIRT term, constituency refers to area of expertise that each members of the team possess along with division of responsibilities that they have within the team . Having wider range of constituency tend to make the team become more efficient and capable to handle different types of attacks to the system.

7 0
2 years ago
Tina and her best friend Aaliyah want to start a medical transcriptionist company together. They grew up together and know each
Ivahew [28]

Answer:

Limited liability partnership (LLP) or a limited liability company (LLC)

Explanation:

Both the LLP and LLC provide limited liability to the owners and they are both pass through tax entities. That means that they are not directly taxed, instead their owners are taxed.

Depending on where Tina and Aaliyah live, they might not be able to open a LLP, and instead they will need to start a LLC. Any of them will satisfy their needs, but starting a LLC is a little bit more complicated and can cost more money. An LLC is usually better if there are several partners, but in this case if they can avoid the cost of opening a LLC it would be better for them.

8 0
2 years ago
Main Street Antiques is planning on paying an annual dividend of $2.20 per share next year. The company is slowly downsizing and
goldenfox [79]

Answer:

The current value of this stock should be $20.

Explanation:

The current value of this stock should be calculated by applying the formula to find present value of growth perpetuity. The formula is shown as below:

Stock price = D1 / ( Rate of required return - Growth rate of annual dividend)

in which: D1 = next year dividend = 2.20;

               Rate of required return = 8%;

               Growth rate of annual dividend = -3%.

So, Stock price = 2.2 / [8% - (-3%) ] = $20.

So, the answer is: the current value of this stock should be $20.

5 0
2 years ago
To help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the foll
Zarrin [17]

Answer:

Option (D) is correct.

Explanation:

Cost of common stock:

= (Expected dividend at the end of Year 1 ÷ Price of stock) + Growth rate.

= (1.45 ÷ 22.50) + 0.065

= 0.0644 + 0.065

= 0.1294 i.e., 12.94%

Conclusion:-

Cost of common stock = 12.94%

Note:-

D1 = Expected dividend at the end of Year 1,

P0 = Current price of common stock, and

gL = Growth level i.e., growth rate in dividend.

3 0
2 years ago
Bonnie is writing a growth plan for her bicycle repair shop. She wants to pay off the loan for the building she uses for her bus
kati45 [8]

Answer:

Financial goals

Explanation:

3 0
2 years ago
Other questions:
  • A former client of charlie hayes, cpa, filed a lawsuit in state court alleging that charlie failed to exercise due care in the p
    11·2 answers
  • In most instances, who is in the best position to perform the function of appraising an employee's performance? someone from the
    11·1 answer
  • Organizers of an Internet training session will charge participants $150 to attend. It costs $3000 to reserve the room, hire the
    12·1 answer
  • Mondo Tacos, a fast food restaurant, operates through a business model in which individuals can buy the rights to set up Mondo T
    8·1 answer
  • Which of the following best describes how information sharing helps eliminate the bullwhip effect? a) Information sharing reduce
    8·1 answer
  • Your Green Investment Tips subscription is about to expire. You plan to subscribe to the magazine for the rest of your life, and
    7·1 answer
  • TPW, a calendar year taxpayer, sold land with a $535,000 tax basis for $750,000 in February. The purchaser paid $75,000 cash at
    5·1 answer
  • Garage Specialty Corporation manufactures joint products P and Q. During a recent period, joint costs amounted to $80,000 in the
    8·1 answer
  • It is March 31, 2014. What is EBay’s latest available actual share count? Please provide your answer without comma separator or
    10·1 answer
  • Your marketing research team has presented you with the research on the external marketing environment. Your first task is to gr
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!