Many economists are critical of the minimum wage because they believe that it: A. hurts the efforts of labor unions.B. reduces t
1 answer:
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Answer:
$787,471.02
Explanation:
Given:
Jim's annual income = $180,000
Monthly property taxes = $140
Monthly homeowners insurance = $70
Monthly student loan payments = $178
Maximum front end DTI limit = 28%
Maximum back end DTI limit = 36%
Amortizing period = 30 years = 360 months
annual rate = 4.5% compounded monthly
Now,
Monthly salary =
or
Monthly salary =
or
Monthly salary = $15,000
Maximum front end DTI limit
= (Maximum Monthly loan payment + monthly property taxes + monthly homeowner's insurance) ÷ Monthly income
0.28 × $15,000 = Maximum Monthly loan payment + $140 + $70
Maximum Monthly loan payment = $4,200 - $140 - $70
= $3,990
and,
Maximum back end DTI limit =
or
0.36 × $15,000 = Maximum Monthly loan payment + $140 + $70 + $178
or
Maximum Monthly loan payment = $5,400 - $140 - $70 - $178
= $5,012
Now,
The monthly payment = minimum of [ $3990, $5012 ]
therefore,
The monthly payment = $3,990
Thus,
The maximum amount of loan = Monthly payment ×
here,
k = 12 when compounded monthly
n = 30 years
r = 4.5% = 0.045
The maximum amount of loan = $3,990 ×
or
The maximum amount of loan = $787,471.02
Answer:
increased in budget = $98000
correct option is A $98000
Explanation:
given data
produce = 20,000 units per month
variable costs = $392,000
fixed costs = $242,000
increases production = 25,000 units
to find out
how much will they have to increase their budget
solution
we get here total cost or present budget that is
total cost = variable cost + fixed cost
total cost = $392000 + $242000
total cost = $634000
and
variable cost per unit will be here
variable cost per unit =
variable cost per unit =
variable cost per unit = 19.6
and
variable cost for increased production = increases production × variable cost per unit
variable cost for increased production = 25000 × 19.6
variable cost for increased production = 490000
and
total cost of increased production = fixed cost + variable cost for increased production
total cost of increased production = $242000 + $490000
total cost of increased production = $732000
and
increased in budget = $732000 - $634000
increased in budget = $98000
correct option is A $98000