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Pavel [41]
3 years ago
12

Advice from most financial advisers states to spend no more than 28% of one's gross monthly income for one's mortgage payment, a

nd to spend no more than 36% of one's gross monthly income for one's total monthly debt. Suppose a family has a gross annual income of $39,600. a. What is the maximum amount the family should spend each month on a mortgage payment? b. What is the maximum amount the family should spend each month for total credit obligations? c. If the family's monthly mortgage payment is 70% of the maximum they can afford, what is the maximum amount they should spend each month for all other debt?
Business
1 answer:
Lena [83]3 years ago
4 0

Answer and Explanation:

The computation is shown below:

a. For the maximum amount that spend each month on mortgage payment is

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 28%

= $924

b. . For the maximum amount that spend each month on total credit obligatons

= Gross annual income ÷ total number of months in a year × mortgage payment percentage

= $39,600 ÷ 12 months × 36%

= $1,188

c. Now the maximum amount spend for all other debt is

For monthly mortgage

= $924 × 70%

= $646.8

And, for mortgage debt

= $1,188 × 70%

= $831.60

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Sadie and Ted must divide a stove, a hut, a chest, a nightstand, an igloo, and a trashcan. They assign points to each item as fo
Ulleksa [173]

Answer:

a. Ted gets the hut; Sadie gets the rest.

Explanation:

Since Ted placed a much more higher priority on the hut by assigning it 35 points more than all other items, and Sadie placed a very low priority on the hut by assigning it 10 points when compared to all other items, it shows Ted is ready to let go of other items just to have the hut, and Sadie is ready to let go of the hut to have the other item. Hence, the "Ted gets the hut, Sadie gets the rest" splits is efficient.

4 0
3 years ago
How can you make yourself "visible" when telecommuting?
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4 0
3 years ago
What is the percentage increase in the net worth of your brokerage account if the price of XTel immediately changes to (a) $44;
gayaneshka [121]

Suppose that Intel currently is selling at $40 per share. You buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%.

What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to (a) $44; (b) $40; (c) $36?

Answer:

Initial worth of brokerage account = 500 × $40 = $20,000

a). if the price changes to $44, then:

worth of brokerage account becomes = 500 × $44 = $22,000

∴ percentage increase = (22,000 - 20,000) / 20,000 = 10% increase.

b). if the price changes to $40, then:

worth of brokerage account becomes = 500 × $40 = $20,000

∴ percentage increase = (20,000 - 20,000) / 20,000 = 0 or no increase.

c). if the price changes to $36, then:

worth of brokerage account becomes = 500 × $36 = $18,000

∴ percentage increase = (18,000 - 20,000) / 20,000 = 10% decrease

7 0
3 years ago
The accountant for Eva's Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the
amm1812

Answer:

See the errors identified below.

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answer is now given as follows:

The following errors can be identified in the accountant's adjusting entries:

1.The accountant debited the account receivable for $5,000 (i.e. $23,250 - $18,250 = $5,000) without crediting laundry revenue.

Therefore, we should have:

Correct amount of laundry revenue = Laundry revenue in trial balance + (Adjusted account receivable - Unadjusted account receivable) = $182,100 + ($23,250 - $18,250) = $187100

2. The accountant debited laundry suppliers expense instead of crediting laundry suppliers for $3,000.

3. The the accountant credited Prepaid insurance for $3,600 (i.e. $5,200 - $1,600 = $3,600). However, the insurance expense was debited for $600.

4. Instead of crediting accumulated depreciation, the laundry equipment for depreciation expense was erroneously credited by the accountant for $13,000.

5. A debit of $1,000 to wages expense was not made by the accountant.

<u>Additional Note:</u>

After correcting the errors identified above, the correct adjusted trial balance will look as the one in the attached photo.

5 0
3 years ago
On January 1, 2018, Gillock Climbing Academy instituted a defined benefit pension plan for its employees. The annual service cos
Licemer1 [7]

Answer:

Pension Expense = EBE = $593440 for income statement

Explanation:

The opening balance of the Plan asset is made by the 40000 from 2018 plus interest of 32000 and the new 400000 made this year. Why include it? Because an opening balance are the funds in an account at the beginning of the year either from last year or are from current year but should be the first entry in the books of the current year.

                                                                 DBO                plan asset       EBE

opening balance                                   (600000)            832000             -

interest                                                   ( 60000)              66560            6560

current year's service cost                    (600000)                               (600000)

                                                            (  1260000 )            898560      <u> 593440</u>

 balance sheet liability = 361440

5 0
3 years ago
Read 2 more answers
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