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
aalyn [17]
3 years ago
11

Use the following advice from most financial advisors to solve the problem. ∙ Spend no more than 28% of your gross monthly incom

e for your mortgage payment. ∙ Spend no more than 36% of your gross monthly income for your total monthly debt. Round all calculations to the nearest dollar, if necessary. Suppose that your gross annual income is $60,000. (a) What is the maximum amount you should spend each month on a mortgage payment? (b) What is the maximum amount you should spend each month for total credit obligations? (c) If your monthly mortgage payment is 70% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt?
Business
1 answer:
Aliun [14]3 years ago
3 0

Answer:

a) $1,400

b) $1,800

c) $820

Explanation:

If the annual income is $60,000, the gross monthly income is I=60,000/12=5,000.

a) The maximum amount you should spend each month on a mortgage payment is:

MP=0.28*I_m=0.28*5,000=1,400

b) The maximum amount you should spend each month for total credit obligations (including mortage) is:

DP = 0.36*I_m=0.36*5,000=1,800

c) If we need only 70% of the maximum allowed for the mortage, we have more income available for other debt payments.

The 70% represents:

MP'=0.7*(0.28*5,000)=980

We substract this from the total budget for debt payments and we have the budget for all other debts but mortage:

ODP=1800-980=820

You might be interested in
Companies striving for global market leadership pursue strategic alliances or collaborative partnerships with foreign companies
FrozenT [24]

Answer:

get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Some examples of international economic organizations involved in global economy and trade are;

I. World Trade Organization (WTO).

II. United Nations (UN).

III. International Monetary Fund (IMF).

IV. United Nations Conference on Trade and Development (UNCTAD).

When a company or business firm strive for global market leadership, its main focus would be to pursue strategic alliances or collaborative partnerships with foreign companies. This would enable it get into critical country markets quickly and effectively, it would also gain an inside knowledge and understanding about unfamiliar markets, consumer demographics and cultures, as well as getting hold of valuable skills and competencies that are concentrated in specific geographic locations in the world.

6 0
3 years ago
If Abrams Company has an inventory turnover of 7.3 and a receivables turnover of 9.6, approximately how long is its operating cy
Leviafan [203]

Answer:

It is 16.9

Explanation:

Operating cycle = Inventory turnover + Receivable turn over - payable turnover

Hence, Operating cycle = 7.3+9.6

=16.9

Operating cycle implies how long it takes us to convert entire production process to cash .

It has an direct relationship with the level of working capital required. The higher the operating cycle, the higher the working capital investment required to keep the operation running.

A cash driven businesses like restaurant which hardly sell on credit will certainly have shorter operating cycle compared to a manufacturing company.

6 0
3 years ago
Livingston Fabrication has created the following aggregate plan for the next 5 months (see PDF): Assume that Livingston will hav
Andreyy89

Answer:

Explanation:

worker's production rate = 60/3 = 20units per hour

monthly capacity 160 x 20 = 3200 units.

capacity needed to produce 2000000 units

= 2000000/3200

= 625

therefore, since they already have 500 workers, they need to hire 125 more workers.

b) At the end of October they will have 2 million inventory.

c) Average inventory in each of the months has been listed in the attachment below.

3 0
3 years ago
Type the correct answer in the box. Spell all words correctly. Which drawback of being an entrepreneur can disrupt your personal
sweet-ann [11.9K]

Answer:

an unpredictable and long work schedule

Explanation:

Being an entrepreneur requires a lot of effort, passion and time. The most scarce resource of all is time, since not even the richest person in the world can add more hours to a day. An entrepreneur must work a lot in order to make his/her company succeed and a lot of work takes a lot of time. An entrepreneur's work schedule is both unpredictable and extremely long. Such a combination is sometimes terrible for your personal life. That is why many entrepreneurs actually work with their partners, e.g. small businesses are generally run by families. If work will absorb so much of your time, you might share your work with your loved ones.

7 0
3 years ago
On September 1, Vicario, Inc., borrows $100,000 from First National Bank at 6 percent annual interest. This note is due in 90 da
Tomtit [17]

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr $100,000            

     To Notes payable A/c $100,000        

(Being the issuance of the note payable is recorded)

For recording this transaction, we debited the cash account as it increases the asset and credited the note payable account as it also increases the liabilities account    

5 0
3 years ago
Other questions:
  • Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 i
    11·1 answer
  • On January 1, Year 1, Young Company issued bonds with a face value of $108,000, a stated rate of interest of 10 percent, and a 1
    15·2 answers
  • All of the following statements regarding a voucher system are incorrect except _____.
    7·1 answer
  • Planners & Builders, Inc., enters into a contract with O’Reilly to refurbish a garage on his property as an auto repair shop
    15·1 answer
  • Jones Manufacturing needs $450,000 to build a new plant. It must also spend $200,000 on new equipment for the plant. Both of the
    12·1 answer
  • Which of the following statements is true of activity−based ​costing?
    6·1 answer
  • Failure to understand the beliefs and expectations of stakeholders:a. Causes a company's profits to increase in the short run.b.
    11·2 answers
  • The state government offered Mike $300,000 for his family’s property, which they plan to use for building a new development.
    11·1 answer
  • Place the components of the M2 money supply in order, from smallest to largest
    8·1 answer
  • A manufacturer of sports bicycles uses various cycling legends and sports celebrities as brand ambassadors to promote its produc
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!