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
What is the correct answer regarding short-run and long-run budgets? a. A short-run budget is generally less than a year in leng
goldfiish [28.3K]

Answer: Option A

Explanation: In simple words, Short run budgets refers to the budgets which are made for a period of less than 12 months and long run budgets are made for a time period greater than one year.

Short run budgets are prepared for some specific assets such as supplying a new customer for one year.

Thus, from the above we can conclude that the correct option is A.

5 0
3 years ago
Bramble Corp. required production for June is 222000 units. To make one unit of finished product, three pounds of direct materia
Virty [35]

Answer:

Purchases=  696,000 pounds

Explanation:

Giving the following information:

Production= 222,000 units.

To make one unit of a finished product, three pounds of direct material Z are required.

<u>To calculate the purchases of direct material, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= 222,000*3 + 420,000 - 390,000

Purchases=  696,000 pounds

5 0
3 years ago
Blossom Corp. will pay dividends of $5.00, $6.25, $4.75, and $3.00 in the next four years. Thereafter, management expects the di
Shkiper50 [21]

Answer:

Present value = $35.00326585 rounded off to $35.00

Explanation:

Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the stock, we will use the following formula,

Present value = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +

[(Dn * (1+g)  /  (r - g))  /  (1+r)^n]

Where,

  • r is the required rate of return
  • g is the constant growth rate in dividends
  • n is the number of years

Present value = 5 / (1+0.155)  +  6.25 / (1+0.155)^2  + 4.75 / (1+0.155)^3  +  

3 / (1+0.155)^4  +  [(3 * (1+0.07)  /  (0.155 - 0.07))  /   (1+0.155)^4]

Present value = $35.00326585 rounded off to $35.00

3 0
3 years ago
Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in
aivan3 [116]

Answer:

Answer not available.

Explanation:

I did this equation and i got 5,880, and i do believe that my work is correct but it may not be so.....

7 0
3 years ago
Which of the following about cash equivalents is false?<br> A<br> B<br> C<br> D
Sonbull [250]
Can u take a screenshot of the whole question for me
6 0
3 years ago
Other questions:
  • 4. Why is the customer service department of a company important?
    14·1 answer
  • HELP ME PLEASE!!!!!!!!!!!!
    7·2 answers
  • On January 1, Year 2, Grande Company had a $63,400 balance in the Accounts Receivable account and a $1,300 balance in the Allowa
    14·1 answer
  • Overextended Debtor. Dennis purchased a big screen television from ABC Electronics and financed the purchase through ABC Electro
    5·1 answer
  • Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock
    12·1 answer
  • The ________ theory states that firms undertake foreign direct investment when the features of a particular location combine wit
    11·2 answers
  • Makers Corp. had additions to retained earnings for the year just ended of $285,000. The firm paid out $180,000 in cash dividend
    11·1 answer
  • A company uses radio frequency identification (RFID) tags to keep track of its inventory. This is an example of the impact of te
    13·1 answer
  • You have just been hired as a business consultant to determine what pricing policy would be appropriate to increase the total re
    6·1 answer
  • Complete the following sentence.<br> The acronym ADA stand for<br> (tourism)
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!