1answer.
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
miss Akunina [59]
3 years ago
8

Jane Doe earns $58,800 per year and has applied for a(n) $99,000, 30-year mortgage at 9 percent interest, paid monthly. Property

taxes on the house are expected to be $6,900 per year. If her bank requires a gross debt service ratio of no more than 30 percent, will Jane be able to obtain the mortgage
Business
1 answer:
Mashcka [7]3 years ago
5 0

Answer:

GDS ratio is 28.12% and is less than the maximum of 30%,hence Jane would be able to get the mortgage

Explanation:

The gross debt service ratio is a measure of the ease with which mortgage holders can repay their housing loan.It compares the yearly property obligations with the yearly income of the mortgage holder.

Gross Debt Service ratio=yearly obligations/yearly income

yearly obligations=property taxes+yearly mortgage repayment

property taxes is $6,900

mortgage repayment=pmt(rate,nper,-pv,fv)

rate is 9%

nper is the duration mortgage of 30 years

pv is the present value of mortgage

fv is future value of mortgage,it is not known,hence taken as zero

=pmt(9%,30,-99000,0)=$9,636.30  

yearly obligations=$6,900+$9,636.30=$ 16,536.30  

GDS = 16,536.30/58,800=28.12%

You might be interested in
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient
RSB [31]

Answer:

1. Cost of the old X-ray machine - SC

2. The salary of the head of the Radiology Department - None

3. The salary of the head of the Pediatrics Department - None

4. Cost of the new laser printer - DC

5. Rent on the space occupied by Radiology - None

6. The cost of maintaining the old machine - DC

7. Benefits from a new DNA analyzer - OC

8. Cost of electricity to run the X-ray machines - DC

Where,

SC - Sunk cost

DC - Differential cost

OC - Opportunity cost

8 0
3 years ago
A conservative investor has a portfolio that consists of diversified investments in equity securities, debt securities, and mone
satela [25.4K]

Answer:

Real Estate-Related Investments.

Explanation:

Real estate related investments involves the purchase, management, renting and sale of real estate properties with the aim of making profit.

Real estate investment is capital intensive and has low liquidity compared to other forms of investment.

This will be a good option for the conservative investor because real estate investment is stable and not prone to huge losses that can be incurred in the money markets. Also real estate is not affected by equities market. So will be a safety net in case of failure in the equity market.

4 0
3 years ago
An investor who owns a bond with a 9% coupon that pays interest semi-annually and matures in three years is considering its sale
tino4ka555 [31]

Answer:

0

Explanation:

7 0
3 years ago
The three phases involved in the management of large projects are
Simora [160]
Operations management are multiple activities that create value for consumers by way of a good or service. The create the good or service and put them out in the market. 
When planning a managing a large product you need to make sure that the phases are follow throughly and accurately.
Phase 1) Planning
Phase 2) Scheduling
Phase 3) Controlling
8 0
3 years ago
Motivation is largely the result of external rewards and punishments. <br> a. True <br> b. False
SSSSS [86.1K]
False. Motivation is an internal and external factors that stimulate people's desire to action that drives people to be committed and interested continuously to attain role, targets, and goals. It also includes conscious and subconscious factors. Hopes this helps you. 
8 0
3 years ago
Other questions:
  • Is rand corporation a liberal or conservative company?
    14·1 answer
  • On May 1, Year 1, Benz’s Sandwich Shop loaned $18,000 to Mark Henry for one year at 9 percent interest. Required a. What is Benz
    8·1 answer
  • Stor Manufacturing stores hazardous and volatile chemicals in its warehouse. The warehouse has state-of-the-art equipment to mak
    15·2 answers
  • In economics, the cost of something is a. always measured in units of time given up to get it. b. the dollar amount of obtaining
    8·1 answer
  • May 24 Sold merchandise on account to Old Town Cafe $18,450. The cost of goods sold was $11,000. Sept. 30 Received $6,000 from O
    10·1 answer
  • Interorganizational systems are examples of _____.
    5·1 answer
  • Five years ago, Tom loaned his son John $20,000 to start a business. A note was executed with an interest rate of 8%, which is t
    14·1 answer
  • Suppose that the united states and canada each produce only two products, televisions and food. The united states can produce 10
    8·1 answer
  • Which education and qualifications are especially useful for Food Products and Processing Systems careers? Check all that apply.
    8·2 answers
  • In a __________ pricing tactic, sellers advertise low prices and then aggressively pressure customers to purchase higher-priced
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!