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Brrunno [24]
2 years ago
10

You work for a lending institution and are tasked with whether or not to approve a home loan. all applicants are required to hav

e a 20% down payment, and the standard 28/36 ratio is used the loan application is for $230,000. you see that the applicant has an annual salary of $83,000 and a savings account balance of $50,000. the applicant also has a car payment of $315, a student loan of $140 and a boat loan of $96. how likely are you to approve the loan?
Business
1 answer:
Sindrei [870]2 years ago
6 0
28% is the front end ratio meaning the mortgage cant exceed 28% of her gross monthly income. With a mortgage of 184k plus taxes and insurance the applicant will likely be under 1500 mo for housing related expenses.  The applicant makes 83k/12mo = $6900mo times by .28 equales $1932mo to keep it under 28 %.  So the applicant is within the front end 28% ratio.  The applicant also has 50k cash to cover the 46k down payment.  Lastly, is the applicant under the back end ration of 36%( which includes all monthly debt.  So 1500 housing plus 315 car plus 140 student loans plus 96 for the boat equals $2051 in total monthly debt obligations.  Once again the applicants gross monthly income is 6900 times by .36 = $2484 a mo.  The applicants total monthly debt is less than 2484.  I would approve this loan.
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You have to cross a broad river with a swift running current. Your options to cross are to swim, walk across an existing bridge,
ruslelena [56]

The risk management principle involved in this is decision making.

<u>Explanation:</u>

The processes and the activities that we perform have some risks involved in them. The intensity of risk might differ from one task to the other task. So the risk involved in these tasks and the activities must be managed properly so that the target can be achieved properly.

These are some principles involved in the management of the risk. The principle involved in the task given in the question is that of making a decision which serves the purpose best and helps you to achieve your target. The decision made to cross the river via the bridge is taken after keeping into mind a lot of factors and the decision taken should minimize the risks. Thus it is the principle of the decision making.

7 0
2 years ago
Read 2 more answers
The following transactions were completed by the company. The company completed consulting work for a client and immediately col
Burka [1]

Answer:

See explanation Section

Explanation:

See the image to get the appropriate answer.

7 0
2 years ago
In year 1, Rim Corporation purchases 1,000 shares of treasury stock for $10 per share. In year 2, Rim reissues 100 shares of the
Alecsey [184]

Answer:

The correct answers are:

C-debit paid-in capital treasury shares $200

D-Debit retained  earnings                     $300

Explanation:

The purchase of treasury stock  for $10 per share implies that the price paid per share is the par value of each share.

Upon issue of 100 shares at $12 the following entries are required:

Dr Cash (100*$12)                  $1,200

Cr Treasury stock(100*$10)                  $1,000

Cr Paid-in capital in excess of par        $200

However upon issue of 500 share at $9 per share which is $1 less than the par value, hence there is $500 discount on the issue.

The discount is recorded as follows:

Dr paid-in capital           $200

Dr Retained earnings    $300

The $200 posted to paid-in capital is the same premium  that posted in there earlier when 100 shares.

5 0
1 year ago
In early November, department stores like Robinsons-May begin to prepare for upcoming holiday sales. Retail stores often make 25
Burka [1]

Answer:

Motivation

Explanation:

Motivation in an organization is a process of e<u>ncouraging employees to perform at higher levels and thereby increase productivity, to increase the chances of the organization achieving its goals and making more profit</u>.

Nancy Cardigan, the General Manager of Robinsons-May, intends to incite her sales associates and get them excited about the upcoming holiday season that comes with an opportunity for increased sales. Therefore she calls a meeting with a purpose of motivating them.

5 0
2 years ago
Which of the following statements is not correct regarding restitution?
astraxan [27]

Answer:

The false statement is letter "D": The impact of restitution is to allow a promisee to recover the value of services he gave to the defendant irrespective of whether he would have lost money on the contract and been unable to recover in a suit on the contract.

Explanation:

In Law, restitution implies returning the monetary value loss of property to the party affected after a trial. Restitution implies returning the material goods a defendant could have taken from the plaintiff or compensating that person in monetary value for the damages caused.  

Only in the case there was property loss, restitution plays like a grant there will be a compensation for the damages. If there are not significant damages or if no monetary pact was signed in a contract, there is no reason why a plaintiff should ask for restitution.

6 0
2 years ago
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