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
Brrunno [24]
4 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]4 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.
You might be interested in
One strategy to keep college tuition costs down is to attend a(n) _____. A.out-of-state school B.community college C.private col
Molodets [167]
It would be B. I know this due to my sister just going to college and having to focus on the price range.
8 0
4 years ago
Read 2 more answers
While sales contests can motivate employees at all levels to participate, a disadvantage of this method of sales promotion is th
Archy [21]
People often discontinue their positive behavior after the contest is over
3 0
3 years ago
The federal Social Security Act A. Does not apply to self-employed persons. B. Excludes professionals such as accountants, lawye
Andrej [43]

Answer:

D. Provides that bonuses and commissions paid as compensation are included as wages in the calculation of employer-employee contributions.

Explanation:

As with reference to Sec 312(a) - it clearly states that all the amount rendered by the employer to the employee as in the nature of wages shall be included for computing the value of contributions.

Thus, as the bonuses and commissions are part of wages.

This clearly it creates the understanding that all the bonus and commissions received by the employee shall form part of wages for calculating the value of employer employee contributions towards the funds.

3 0
3 years ago
If your team is composed of people from different functional departments (and even outside the organization), what type of team
Alborosie

Answer:

Cross functional team

Explanation:

There are various team types depending on their composition and how they function to meet organisational goals.

The types of teams are functional, cross functional, and work teams.

The cross functional team are made up of individuals from different functional departments and even from outside of the organisation.

This type of team is characterised by people who are experts in their fields. Therefore they usually make decisions without consulting management.

This type of team maximises coordination between specialised subunits

6 0
3 years ago
Which of the following is an example of an activity undertaken by an​ entrepreneur? A. being promoted to the position of Chief o
luda_lava [24]

Answer:

C) starting a snow cone business

Explanation:

An entrepreneur is someone who decides to start his own business, usually a small business. Only option C refers to starting a new business.

Option A and B refer to positions where you are employed by the government (being a government employee is the opposite of being an entrepreneur).

Option D refers to painting your kitchen not opening a new business.

5 0
4 years ago
Other questions:
  • Net present value method The following data are accumulated by Geddes Company in evaluating the purchase of $160,000 of equipmen
    9·1 answer
  • 24.
    12·1 answer
  • Ted can wax a car in 20 minutes or wash a car in 60 minutes. Tom can wax a car in 15 minutes or wash a car in 30 minutes. What i
    5·1 answer
  • Rental car prices usually include the cost of the insurance for A. death of the person renting the car. B. damages to the rental
    7·1 answer
  • B2B co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is
    12·1 answer
  • Zappos, an online shoe company, knows shoes are typically a(n) __________ good, with consumers often spending time comparing alt
    10·1 answer
  • Question 4: FastFit and Capital One are two very different organizations but both rely on information technology to enable busin
    6·1 answer
  • Todd has accumulated assets of $550,000 that he wishes to dedicate to his retirement. Inflation is anticipated to average 2% ove
    11·1 answer
  • Which of the following is a variable expense?
    11·2 answers
  • What is local business​
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!