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
Lisa [10]
3 years ago
10

Affan Chawdry has monthly net income of $1,050. He has a house payment of $450 per month, a car loan with payments of $375 per m

onth, a Visa card with payments of $50 per month, and a credit card with a local department store with payments of $100 per month. What is Affan's debt payments-to-income ratio
Business
1 answer:
Stolb23 [73]3 years ago
8 0

Answer:

92.86%

Explanation:

Debt-to-income ratio is a comparison or personal debts against income.  It is used to assess an individual ability to accommodate more debts.

The formula for for calculating Debt to income is

Debt to income is   <u> Total of Monthly Debt Payments​​  </u>

    Gross Monthly Income        

For Affan, Total debts are $450 + $375 + $50+ $100 =$ 975

Gross income is not given , we use net income which is $1,050

Debt to income ration =  $975/$1050

=  0.92857 x 100

= 92.86%

You might be interested in
A public debt which is owed to foreigners can be burdensome because: a foreign interest rates are persistently higher than domes
yulyashka [42]
<span>A public debt owed to foreigners can be burdensome because B) payment of interest reduces the volume of goods. This can usually be seen illustrated in the form of a nation lending another nation money. The debt is public because the whole nation takes it on. The lending nation then is lacking in terms of use by the lending nation.</span>
4 0
3 years ago
Which of these options for saving money typically offers the least liquidity?. . A.Savings bond. B.Money market account. C.Certi
zhuklara [117]
Among the following <span>options for saving money that typically offers the least liquidity, (A) Savings Bond is the correct answer. The term that is being referred here which 'least liquidity' means that you or any other person can not withdraw any money at any time they want.</span>
6 0
2 years ago
Read 2 more answers
For many years, college costs (including tuition, fees, and room and board) increases have been higher than the inflation rate,
arsen [322]

Answer: $23,888

Explanation:

The cost today for a freshman at a public university is $19,500.

Inflation is at 7% a year and the period is 3 years from now. It is best to use a future value formula:

= Fees * ( 1 + rate) ^ number of years

= 19,500 * ( 1 + 7%)³

= 19,500 * 1.225043

= $23,888

3 0
3 years ago
The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactu
Sholpan [36]

Answer: A.exceed units sold

Explanation:

In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.

Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

This difference in consideration of costs under each method leads to difference in income determination under each method.

Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

8 0
2 years ago
A(n) _____________ activity includes those transactions and events that determine net income, including the purchase of merchand
expeople1 [14]

An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.

A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.

  • The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market.
  • Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business.
  • Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive.
  • It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.

Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.

Learn more about cash flow activities here:

brainly.com/question/14122060

5 0
2 years ago
Other questions:
  • Your auto insurance policy has a $200 monthly premium and $700 deductible. What is the maximum amount you will have to pay out-o
    12·2 answers
  • The City of Southern Pines maintains its books so as to prepare fund accounting statements and records worksheet adjustments in
    14·1 answer
  • You love peanut butter and you can't live without it. You hear on the news that 50 percent of the peanut crop in the South has b
    10·1 answer
  • eBookPrintReferences Check my work Check My Work button is now enabledItem 180Item 180 Ouelette Corporation's relevant range of
    15·1 answer
  • A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh
    7·1 answer
  • For more than a thousand years, the Catholic Church required its members to abstain from meat on Fridays. Catholics customarily
    5·1 answer
  • Which market segmentation dimension describes consumers by the groups with which they associate?
    10·1 answer
  • Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $7,000 the first ye
    7·1 answer
  • The Willie Company has provided the following information: Operating expenses were $345,000; Income from operations was $415,000
    8·1 answer
  • the graph to the right depicts the per unit cost curves and demand curve facing a shirt manufacturer in a competitive industry 8
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!