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gogolik [260]
3 years ago
5

Hope is applying for an FHA loan to purchase a $360,000 condominium. Her proposed monthly mortgage payment is $1,850 and she has

a $500 car payment and a $350 student loan payment. Using the fixed payment to income ratio, what would be her minimum monthly income in order to afford this loan?
Business
1 answer:
AnnZ [28]3 years ago
3 0

Answer: $6289.07

Explanation:

Monthly mortgage = $1,850

Car payment = $500

Student loan = $350

Note : 43% is the maximum debt to income ratio under FHA

Therefore calculating Hope's total monthly debt ;

(Monthly mortgage + car payment + student loan)

$(1850 + 500 + 300) = $2700.

Therefore Hope's minimum monthly income in other to afford the loan can be calculated by dividing her total monthly debt by the maximum debt to income ratio under FHA

$2700 ÷ 0.43 = $6,279.069

=$6279.07

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Should banks have to hold 100% of their deposits? Why or why not?
fomenos

Answer:

No, they dont have to hold the 100%.

Explanation:

Because banks use the money deposited to make loans to other clients. By general rule the Commercial Banks are required to keep only the 10% of each deposit made in an account.

8 0
3 years ago
Why does a price floor lead to surpluses?  Why does a price ceiling lead to shortages?  ​
Degger [83]

Answer:

Shortage: there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied.

Your pretty much short in supply and cant fulfill the demand

While surplus

When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.

Theirs a a large amount of supply due to the pricing most likely beign high

Explanation:

7 0
3 years ago
Pharoah Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $390,600. The estimated fair
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Answer:

Land = 65100.001

Building = 238699.999

Equipment = 86799.99

Explanation:

Total Asset Fair Value = Land + Building + Equipment

Total Asset Fair Value = $74,400+$272,800+$99,200

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Recorder Amount

Land = $74,400/$446400 * $390,600

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Building = $272,800/$446400 * $390,600

Building = 238699.999

Equipment = $99,200/$446400 * $390,600

Equipment = 86799.99

3 0
3 years ago
When John first starts his job, he rides the bus wherever he goes. However, after one year, John receives a promotion and a pay
vekshin1

Answer:

c. Inferior

Explanation:

Based on the information provided it can be said that this behavior would indicate that to John, a bus ride is an inferior good. This term by definition is a good whose demand decreases when consumer's income rises. Since John received an increased salary with his promotion, he is now able to afford to be able to drive instead of taking the bus. Therefore his demand for taking the bus has drastically decreased.

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Answer:

a. the alternative punishments that are available  

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Alternative punishments generally tend to change the support patterns with more softline polling members opting for alternative punishments rather than death penalty.

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