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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

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A groundwater treatment system is needed to remediate a solvent-contaminated aquifer. The system costs $2,500,000. It is expecte
Paha777 [63]

Answer:

C.) $225,000

Explanation:

The modified accelerated cost recovery system (MACRS) is a depreciation system used for tax purposes in the U.S. MACRS depreciation allows the capitalized cost of an asset to be recovered over a specified period via annual deductions. The MACRS system puts fixed assets into classes that have set depreciation periods.

Subtract the asset's salvage value from its cost to determine the amount that can be depreciated. Divide this amount by the number of years in the asset's useful lifespan.

Then for monthly

Divide by 12 to tell you the monthly depreciation for the asset.

$2500000-$250000= $2250000

2250000/10= 225000

6 0
3 years ago
Piper owns a vacation cabin in the Tennessee mountains. Without consider-ing the cabin, she has gross income of $65,000. During
zloy xaker [14]

Answer and Explanation:

a)  rent income from sarah's vacation house will not affect her AGI, because according to rules if vacation house is used fewer than 15 days, in that case it is treated as a personal house and its expenses and income have not effect on the AGI. only the mortgage interest and property yax will be deducted from AGI.

b) only the mortgage interest and property yax will be deducted from AGI. other expenses are non-deductible from AGI because these are treated as personal expenses.

7 0
3 years ago
All of the following are true about marketing except which?
Zina [86]

Answer:

The correct answer would be option C, Successful marketing usually result in one winner and one or more losers.

Explanation:

Marketing is basically the set of activities that promote the buying or selling of a product of the company. Many strategies are used to promote the product of service of a company. Advertisement, selling, promotions, etc are all parts of marketing plans.

When a marketing plan is implemented, the company hopes to get the best out of that plan. A successful marketing plan does not usually result in one winner and one or more losers. A marketing plan is either successful or unsuccessful. It is totally the matter of the company. If the marketing strategies turn out to be great, the marketing plan is considered the Success for the company, and vice versa. So it is always one winner or loser, which will always be the company.

6 0
3 years ago
A machine that cost $400,000 has an estimated residual value of $40,000 and an estimated useful life of four years. The company
dybincka [34]

Answer:

Book value at the end of year 3 of the machine: $130,000

Explanation:

The company uses straight-line depreciation method, Depreciation Expense each year is calculated by following formula:

Depreciation Expense = (Cost of machine − Residual Value )/Useful Life = ($400,000-$40,000)/4 = $90,000

At the end of year 3, Accumulated depreciation = $90,000 x 3 = $270,000

Book value of the machine is: the machine's cost minus the machine's accumulated depreciation.

At the end of year 3, Book value of the machine = $400,000 - $270,000 = $130,000

6 0
3 years ago
Wayland company has total liabilities of $65,000 and total equity of $130,000. it's debt-to-equty ratio is:______
Natali [406]

Wayland company has total liabilities of $65,000 and total equity of $130,000. Its debt-to-equity ratio is 0.5. The debt-to-equity ratio can be calculated by dividing total liabilities by the total equity of the company.

The debt-to-equity (D/E) ratio is used to assess a company's financial leverage. The D/E ratio is an essential measurement in corporate finance. It is a measure of the degree to which a company finances its functions with debt rather than its own resources. The debt-to-equity ratio is a specific kind of gearing ratio. Contrary to the debt-assets ratio which uses total assets as the denominator, the D/E ratio takes total equity into the consideration. This ratio indicates how a company's capital system is tilted towards debt or equity financing.

Learn more about the debt-to-equity ratio:

brainly.com/question/25651634

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4 0
1 year ago
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