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
Novosadov [1.4K]
3 years ago
6

Kim is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living a

t home and works in a shoe store, earning a gross income of $1,230 per month. Her employer deducts $165 for taxes from her monthly pay. Kim also pays $134 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $172 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.)
Business
1 answer:
IgorLugansk [536]3 years ago
3 0

Answer:

Debt to income ratio is all your debt payments divided by all the money you earn during a month. Generally you are considered to be in good financial shape when your debt to income ratio is less than 20%, if it's less than 10% it is even better.

Kim's gross income = $1,230 - $165 (taxes) = $1,065

Kim's total debt payments without new debt = $134 (credit card payments)

Kim's total debt payments including new debt = $134 + $172 (new debt) = $306

Kim's debt to income ration without new debt = $134 / $1,065 = 12.58%

Kim's debt to income ration with new debt = $306 / $1,065 = 28.73%

Currently Kim's debt to income ratio is only 12.58% which is very good, but if she takes the new loan then her ratio will increase to 28.73% which is extremely high and not prudent.

You might be interested in
Suppose a three period weighted average is being used to forecast demand. Weights for the periods are as follows: 0.1, 0.4 and 0
nika2105 [10]

Answer:

$143

Explanation:

The computation of the demand forecast is shown below:

= Weightage × demand observed + Weightage × demand observed +  Weightage × demand observed

= 0.1 × 120 + 0.4 × 140 + 0.5 × 150

= $12 + $56 + $75

= $143

Basically we multiplied the weighatge with its demand observed so that the demand forecast could come

7 0
3 years ago
Consider the following data: currency (held outside banks) = $354 billion, checkable deposits = $250 billion, traveler's checks
Agata [3.3K]

Answer:

a). M1=$808 billion

b). M2=1,068 billion

Explanation:

M1 is the money supply that is the most liquid and is or can be easily converted into cash. The formula for calculating M1 is;

M1=C+D+T+S

where;

M1=money supply

C=currency held outside banks

D=checkable deposits

T=traveler's checks

S=small-denomination time deposits

In our case;

M1=unknown

C=$354 billion

D=$250 billion

T=$4 billion

S=$200 billion

replacing;

M1=(354+250+4+200)=$808 billion

M1=$808 billion

M2 includes elements of M1 and additional  money supply that are near liquid. The formula is;

M2=M1+savings deposit+mutual funds

where;

M1=$808 billion

savings=$100 billion

retail money market mutual funds=$160

replacing;

M2=(808+100+160)=1,068 billion

M2=1,068 billion

5 0
3 years ago
Duerr Company makes a $69,000, 30-day, 10% cash loan to Ryan Company. The note and interest to be collected at maturity is: (Use
Dimas [21]

Answer:

the journal entry to record the loan:

E.g. January 1, 202x, loan made to Ryan Company

Dr Notes receivable 69,000

    Cr Cash 69,000

the journal entry to record the collection of the note:

E.g. January 31, 202x, note collected from Ryan Company

Dr Cash 69,575

    Cr Notes receivable 69,000

    Cr interest revenue 575

interest revenue = $69,000 x 10% x 30/360 = $575

4 0
3 years ago
When we use a set of well defined steps to perform a task or solve a problem, we are using a/an _____?
Alik [6]
We are using an algorithm
3 0
3 years ago
5. Explain one reason homeowners might lose their home?
Paladinen [302]

Answer:

if they have not paid their bills on the home and "refuse to" they can lose the house or if they are "horders" and don't follow the rules set by law enforcement and clean their house in the designated time, the house will be taken away from the homeowners and be torn down

6 0
3 years ago
Read 2 more answers
Other questions:
  • Expensive, high-quality products that are purchased infrequently often reach consumers through Answers: a. intensive distributio
    14·1 answer
  • Which statements indicate that Rick’s company is a limited liability company? Rick Douglas is a bright and passionate lighting d
    10·1 answer
  • Adams operates his $57500 firm using his own equity. Bob operates his firm with $28750 of his own money plus $28750 of debt at a
    9·1 answer
  • Suppose that consumers would like to purchase 10 million dvds but only 5 million are available. in order for the market to coord
    8·1 answer
  • Consider that you own the following position at the beginning of the year: 200 shares of US Bancorp at $29.89 per share, 300 sha
    13·1 answer
  • An operations manager is NOT likely to be involved in:
    6·1 answer
  • 225,000 cartons of machine screws per year to support its manufacturing needs over the next seven years, and you've decided to b
    5·1 answer
  • You are at a trading card convention, and observe that for a certain card, a dealer is willing to buy the card for $100, and sel
    5·1 answer
  • You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table above. If your income
    6·1 answer
  • I am making marketing plan for a company can anyone help me in making swot analysis
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!