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posledela
3 years ago
10

A lender requires that monthly mortgage payments be no more than 25% of gross monthly income with a maximum termof 30 years. If

you can make only a 15% down payment, what is the minimum monthly income needed to purchase a $300,000 house when the interest rate is 6% compounded monthly?
Business
1 answer:
miskamm [114]3 years ago
7 0

Answer:

$61,187.6

Explanation:

We first, must find the value of the monthly payments. Because the payments are regular in time, have the same value, and fall under the same interest rate, the payments are an annuity.

To find the value of the monthly payments, we use the present value of an annuity formula, but first, we substract the down payment from the total mortgage payment (300,000 x 15% = 45,000), so the mortgage payment that we will use in the formula is = 300,000 - 45,000 = 255,000

255,000 = X ((1-(1+0.06)^{-360} )/0.06)\\255,000 = X (16.67)\\\\\frac{255,000}{16.67} = X\\\\15,296.9 = X

Because the lender requires the monthly payments to be no more than 25% of gross income, we need to find for what value $15,296.9 is the 25% of:

15,296.9 x 100 / 25 = 61,187.6

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A. Best Food's competitive position in the segment

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3 years ago
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Lula thinks that people who discipline their children by spanking should be sent to jail and says she would be glad to go to jai
Igoryamba

Answer:

a. Kantianism

Explanation:

Kantianism -

This theory was given by Immanuel Kant.

According to this theory ,

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3 years ago
In the components of a business plan, what section contains a detailed description of the company, the problem/opportunity, prop
dimaraw [331]

In the components of a business plan, the section which contains a detailed description of the company, the problem/opportunity, proposed solution to be offered, and your competitive advantage is "Financial Projections section"

<h3>What is Financial Projections?</h3>

Financial predictions forecast your company's future revenues and expenses using existing and estimated financial data.

They frequently contain many scenarios so you may see how adjustments to one part of your finances (for example, increased sales or reduced operational expenses) may affect your profitability.

Financial predictions are an important tool for business planning for a variety of reasons.

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REY [17]

Answer: $700,000

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Retained earnings break even can be computed as follows :-

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retained earnings = net income (1- payout ratio)

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therefore,

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