Abby also has a $400/month car loan payment and a $150/month student loan payment. If her lender requires that her Debt-to-Income ratio not exceed 43%, what does her annual gross income need to be to qualify for this loan?
Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent. Wha...
A: Debt financing involves borrowing funds and returning the principal amount in addition with interest...
Q: Describe three circumstances under which a person who has ceased to be a liquidator is released from...
A: Liquidation of assets can be voluntary or compulsory. Voluntary liquidation may be conducted to rais...
Q: 2. Construct a decision tree for Problem #1 to help you in your decision analysis. What alternative ...
A: Since answer for problem 2 is requested, I'm answering the same.
Q: The manked pice of a bicyele So00-andl the selling paice 3 Gaco/-Whoatis the diseunt bieycde? CATION...
A: Cash Discount: Cash Discount is the discount provided by the sellers to encourage buyers to make pa...
Q: You expect to retire in 25 years. After you retire, you want to be able to withdraw $3000 dollars fr...
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at t...
Q: A. Which of the following is most closely associated with the cost of using assets? a. Asset utiliz...
A: A. The ratio of total sales or revenue to average assets is known as asset turnover. The asset turno...
Q: Identify methods for using and analysing working capital cycles
A: Working capital is the capital that a business needs and uses for the purpose of its day to day trad...
Q: Ten years ago, Video Toys began manufacturing and selling coin-operated arcade games. Dividends are ...
A: The stock price which is the maximum price to be paid for share consists of dividends and terminal v...
Q: nnual report of 2019 which shows an EBITDA of P5,000,000 and a total liability of P15,550,000. Evide...
A: Corporate valuation is a process of evaluating the worth of a company entity in the realm of finance...
Q: Problem 16-5 MM and Stock Value Foundation Corporation is comparing two different capital structures...
A: Capital structures includes the equity debt mix which is to be used by entities in financing theory ...
Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposi occ...
A: The today value is the present value of annual series considering the interest rate and given period...
Q: A real estate developer bought land for $170000.00 down and monthly payments of $10550.00 for 10 yea...
A: The loans are paid by monthly equal instalments these carry the payment for the interest and payment...
Q: Find the monthly house payments necessary to amortize the following loan. What are the total payment...
A: Loan amount (PV) = 196000 Interest rate = 6.89% Monthly interest rate (r) = 6.89%/12 = 0.57416666666...
Q: Cost of commercial paper Commercial paper is usually sold at a discount. Fan Corporation has just so...
A: commercial paper is the short-term money market instrument that is issued by the company to meet its...
Q: Velma, a 59-year-old minority woman who works as a teacher, contacts you about getting a loan to pur...
A: Adjustable-rate mortgage (ARM) is also known by the name variable rate mortgage. The initial interes...
Q: Over the last several decades, Hong Kong has gradually established itself as the most important fina...
A: Following China's surrender of Hong Kong to the British under the Treaty of Nanking in 1842, the col...
Q: Jinchuriki Inc.'s Financial Statement for years 2014-2015. Compute of the Average Sales Period/ Aver...
A: Ratios are calculated to determine the financial position of the company so that it would be easy to...
Q: Use PMT to detormine the regular payment amount, rounded to the nearest cent. The cost of a home is ...
A: Installment payment has two components as first interest amount and second principal amount utilized...
Q: 22.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round y...
A: Compound amount (FV) = $26,500 Period = 18 Months Semi annual period (n) = 18/6 = 3 Interest rate = ...
Q: down payment.
A: A home loan refers to the amount borrowed from financial institutions or banks for the purpose of bu...
Q: Problem 9-16 Problems with Profitability Index [LO1, 7] The Michner Corporation is trying to choose ...
A: a1) Let the initial investment = C Annual cashflow = A r = 11% n = 3 years
Q: ar Colfs tree cash fows are expected to grow by 8.% per year, what is the market value of s equity l...
A: EBIT = $22 Million Capital Expenditure = $6 Million Depreciation Expense = $3 Million Corporate tax ...
Q: Referring to the table below is the information about three RM1000 par value bonds and each of which...
A: Given Three bonds Bond 1, Bond 2 and Bond 3.
Q: A couple who wants to purchase a home with (a) What will be their monthly payments? (b) What is the ...
A: Loan Amortization: It is a process of paying the loan off by making equal periodic payments. These ...
Q: Paccar’s current stock price is $48.20 and it is likely to pay a $0.80 dividend next year. Since ana...
A: Required return can be calculated as: = (Dividend to be paid next year / current stock price) + grow...
Q: You want to create an endowment income of $35,000 per year for Oxfordshire Charity, bit the first pa...
A: The amount that should be invested today is the present value of all future endowment payments. Sinc...
Q: A car lease of $12613 is to be repaid by making payments at the beginning of each month for 3 years....
A: Car Lease Amount = $12613 Time Period = 3 Years Interest Rate = 3%
Q: A private rank and file employee working in a remote tower station of Convulge Internet Company rece...
A: 13th month pay 72,000.00 Performance bonus 15,000.00...
Q: The present worth of package K is $ and that of package Lis $ (Click to select) offers the lower pre...
A: Net present value (NPV) of an alternative refers to the variance between the initial investment or p...
Q: You bought 100 shares of Zen stocks initially selling at Php 50 with an initial margin on your purch...
A: Given: Particulars Number of shares 100 Selling price 50 Initial margin 25% Interest ra...
Q: A Treasury bond that you own at the beginning of the year is worth $1,055. During the year, it pays ...
A: Dollar return is calculated as: = (Price at end + Dividend) - Price at beginning Percentage return i...
Q: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. The s...
A: Tax shield on depreciation =(6,300,000/4)*(0.36) 567000 After tax lease payment = 1745000*(1-0.36)...
Q: 2. It is estimated that a stand of timber will net P 25,000 a year for the next 10 years and that th...
A: Annual cash inflow (P) = P25000 Interest rate (r) = 6% Salvage value (SV) = P15000 Period (n) = 10 Y...
Q: A Canadian company is considering the purchase of a $7000 machine for their shop. The machine belong...
A: Present worth is the sum total of all the present value of net cash outflows and inflows discounted ...
Q: Cal withdrew $800 from his HSA to pay for non-medical expenses. He had to pay 25% income tax plus a ...
A: Withdrawal Amount = $800 Income Tax = 25% Penalty = 10%
Q: Calculate the bank's excess reserves if the legal reserve requirement is 25% based on the informatio...
A: Excess reserve refers to the fund (reserves) held by the bank or financial institutions and the amou...
Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...
A: Year Net income Net sales 2020 200000 5050000 2021 225000 7000000
Q: Which of the following statements concerning the Efficient Market Hypothesis is correct? Select one...
A: Share prices, according to the efficient market hypothesis represents all the information available ...
Q: A stock currently sells for 50 and can rise by 6 or fall by 4 for each of the next two periods. The ...
A: Current market price Values at the end of period one Values at the end of period two Value of call o...
Q: FRO082 (7% coupon, paid semi-annually) will mature on September 15, 2030. If you buy this bond on Ma...
A: Cash Flow at the time of maturity = 100 Interest (Annuity) semiannually = (100 * 7%) * 6 / 12 = 3....
Q: You created and sold a futures contract 25 days ago. The contract at that time had a price of $60 an...
A: The rate of return of an investment with zero risk is known as the risk-free rate of return. It can ...
Q: Warren Buffett: How Most People Should Invest in 2021 explain the statement given
A: The statement was issued by Buffet in 2021 Berkshire Hathaway annual meeting. In the annual meeting ...
Q: solve this cash flow
A: Cash flow refers to the balance of the cash inflows and outflows of a business over a period of time...
Q: How do gross profits, operating income, and net income differ
A: In finance when making or analyzing an income statement we look into different types of income or pr...
Q: what is a contract
A: A Contract A contract is an agreement between at least two parties or more that generates enforceab...
Q: hat was the amount of each payment
A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed ...
Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...
A: In finance we often use the average collection period as one of the financial metrics. This metric ...
Q: Rosaline bought 9 tickets to an international product exposition for P2,025.00. How many tickets can...
A: Total cost of 9 tickets P2,025.00 Cost of 1 ticket (P2,025.00 / 9) P225.00 Total amount sp...
Q: Calculate the Black-Scholes price of a Call option where: S = $50 %3D K = $45 %3D T-t=.25 O = .20 r ...
A: Here we have; Spot price S is $50 Strike Price K is $45 Standard deviation is 20% Risk free rate is ...
Q: a) Assess the financial performance of BWealth Ltd using the information given. b) Briefly explain ...
A: Financial KPIs (key performance indicators) are metric entities used to track, measure, and analyze ...
Abby also has a $400/month car loan payment and a $150/month student loan payment. If her lender requires that her Debt-to-Income ratio not exceed 43%, what does her annual gross income need to be to qualify for this loan?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Andy's yearly income is $40,000. What would Andy's debt load be on a $15,000 personal loan? Would Andy's debt load follow the guidelines of the 20/10 rule? Provide a reason for Your answer.1) Calculate: Rimi currently earns $2,500 per month. She has the following monthly debt payment expenses: $75 for credit cards, $125 for student loans, and a $235 car payment. She is looking to buy a house. The monthly mortgage, including principal, insurance, and taxes, is $900. Does Rimi meet the FHA housing payments-to-income ratio guideline? O O O O Yes, because her ratio is less than 31%. No, because her ratio is greater than 31%. Yes, because her ratio is less than 43%. No, because her ratio is greater than 43%.Natalia has a monthly net income of $1,400. She has a house payment of $600 per month, a car loan with payments of $300 per month, a Visa card with payments of $60 per month, and a credit card with a local department store with payments of $32 per month. What is Natalia’s debt payment-to-income ratio? Is she within range of what experts suggest you spend on consumer credit payments?
- Ted Phillips has monthly take-home pay of $1,200; he makes payments of $450 a month on his outstanding consumer credit (excluding the mortgage on his home). How would you characterize Ted's debt burden?6. Genesus wants to buy a car. Her monthly income is $800, and she already has a credit card payment of $50 per month. Based on the debt to income ratio formula, how much in additional (extra) monthly payments can she afford?Rafaela has a gross monthly income of $3,900. She has 15 remaining payments of $189 on a used car. The taxes and insurance on a house Rafaela may purchase are $115 per month. What maximum monthly payment does the bank's loan officer feel that Rafaela can afford? The maximum monthly payment includes principal and interest for the amount of the loan as well as the taxes and insurance. Round your answer to the nearest cent.
- Chloe Young is evaluating her debt safety ratio. Her monthly take-home pay is $3,320. Each month, she pays $380 for an auto loan, $120 ona personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Chloe’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debtpayments that Chloe can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Chloe’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?Rachel Johnson has net monthly income of $3,325. She has a monthly auto loan payment of $385, a student loan payment of $210, and a credit card minimum payment of $70. What is her debt-payments-to-income ratio?Amy earns $5,891 per month. She pays a monthly mortgage of $1,230, a monthly car payment of $195, and a student loan payment of $210 per month. She would like to apply for a credit card but needs to keep her back- end DTI at 40% maximum. What would her maximum monthly credit payment need to be?
- Alan and Samantha Brown have a mortgage with the Bank of America. The bank requires the Browns to pay their homeowner's insurance, property taxes, and mortgage in one monthly payment to the bank. Their monthly mortgage payment is $1,450.30, their semi-annual property tax bill is $6,470, and their annual homeowner's insurance bill is $980. How much is the monthly payment they make to Bank of America?Alyssa Clark is evaluating her debt safety ratio. Her monthlytake- home pay is $3,320. Each month, she pays $380 for an auto loan, $120 on a personal line of credit, $60 on a department store charge card, and $85 on her bank credit card. Complete Worksheet 6.1 by listing Alyssa’s outstanding debts, and then calculate her debt safety ratio. Given her current take-home pay, what is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 12.5 percent? Given her current monthly debt payment load, what would Alyssa’s take-home pay have to be if she wanted a 12.5 percent debt safety ratio?Chris and Karen have a combined take-home income of $5,000. Their total monthly payments on consumer debt are $875. What is their debt safety ratio? Are they exhibiting any sign of approaching credit problems?