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MrMuchimi
1 year ago
9

A borrower is purchasing a three-family, owner-occupied rental property. Rental income will be $2,000 (verified only by leases).

The PITIA on the property is $2,350. The borrower has a gross monthly income of $5,760 and monthly debt payments of $625. What are the ratios for this loan
Business
1 answer:
ololo11 [35]1 year ago
7 0

LTV= principal amount/ market value of your property.

what is a Loan ratio - Financial institutions utilize the Loan-to-Value Ratio (LTV) to determine the lending risk before approving a mortgage for the purchase of real estate.
26:10
Rental income will be $2,000 (verified only by leases)
The PITIA on the property is $2,350
The borrower has a gross monthly income of $5,760
monthly debt payments of $625.
Pitia refers to the following items: principal, interest, taxes, insurance, including hazard and flood insurance, as well as homeowners' association or condominium dues, although it excludes mortgage insurance charges.
Debt payment is the action of returning money you have borrowed. m making debt payments is difficult and a lot of people struggle to make their debt payments.
To learn more about Loan ratio please refer to - brainly.com/question/15582030
#SPJ4

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Douglas can afford 240$ a month for five years for a car loan. If the APR is 8.5%, how much can he afford to borrow to purchase
SVETLANKA909090 [29]

Answer:

Douglas can afford 21697.88 to borrow to purchase a car.

Explanation:

As the formula for calculating present value is given as:

PV = PMT * ( (1-(1+r)^-n) / r )

As Douglas can afford 240$ a month for five years for a car loan so

it means that payment = 240 $

As the APR is 8.5% which means after dividing by 12 the rate per month = 8.5%/12

Total number of Months = 5*12

Total number of Months = 60

Putting these values into the above formula, we get

PV = PMT * ( (1-(1+r)^-n) / r )

PV = 240 * ( (1-(1+8.5%/12)^-60) / (8.5%/12) )

PV = 11697.88

As the down payment = 10,000 so the total value of car

= 11697.88+10000

= 21697.88

Douglas can afford 21697.88 to borrow to purchase a car.

8 0
3 years ago
On March 14, Teal Co. accepted a 120-day, 6% note in the amount of $10,000 from AZC Co., a customer. On the due date of the note
Y_Kistochka [10]

Answer:a credit to  Interest revenue for $200

Explanation:

Interest =  Principal x rate x time ( period )

= $10,000 x 6% x 120/360

=$200

    Account titles and explanation               Debit Credit  

                       Cash                                $10,200  

    Note receivable                                          $10,000  

    Interest revenue                                           $200

Therefore, The journal entry that Teal would make to record payment of this note would include a credit to  Interest revenue for $200

5 0
2 years ago
The Ricardian equivalence theorem states that
motikmotik

Answer: The Ricardian equivalence theorem states that : <u>"A. an increase in the government budget deficit has no effect on aggregate demand."</u>

Explanation: Ricardian Equivalence establishes that when the government increases the expenses financed with debt to try to stimulate the demand, this increase of the expenses does not produce any change in the demand.

This happens because the increases in the public deficit will be higher taxes in the future. Therefore, taxpayers reduce their consumption and increase their savings in order to offset the cost that will be the future tax increase.

5 0
3 years ago
The following information is provided for Slickers, Inc. for year 2016: • Preferred stock, 5%, $20 par value, 1,500 shares issue
gayaneshka [121]

Answer:

The amount of dividends paid to common stockholders in 2016 is $4000

Explanation:

The cumulative preferred shares are the shares that accumulate dividends in case the dividends on these shares are not paid or paid partially in a year. The accumulated dividends will need to be paid first whenever the company declares dividends.

The amounts of dividends on preferred share for one year is,

Dividends - Preferred shares = 20 * 0.05 * 1500  =  $1500

Thus, the accumulated dividends on these preferred shares at start of 2016 is,

Accumulated dividends - Preferred shares = 1500 * 3 = $4500

The common shares holders are paid after the preferred share holders have been paid. This means that we will deduct the amount of accumulated dividends on preferred shares and the dividends for this year on preferred shares from the total dividends to calculate the amount to be paid to common share holders as dividends.

Common stock dividends =  10000 - (4500 + 1500)   = $4000

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nasty-shy [4]
I think that the answer is A but i have no clue i’m so sorry :(
3 0
3 years ago
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