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Elena-2011 [213]
3 years ago
7

In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a tota

l debt ratio as part of its underwriting process. Utilizing the following information, calculate the total debt ratio. Monthly principal and interest on mortgage loan: $635, Monthly Tax and insurance payments into escrow: $125, Monthly Car lease payment (lease term is 3 years): $350, Gross monthly income: $2,500
A. 25.4%
B. 30.4%
C. 44.4%
D. 53.2%
Business
1 answer:
Paha777 [63]3 years ago
8 0

Answer:

Total debt ratio will be 44 %

So option (c) will be the correct option

Explanation:

We have given monthly principal and interest on mortgage loan = $635

Monthly Tax and insurance payments = $125

Car lease payment = $350

Now total monthly obligations = $625+$125+$350 = $1100

Gross monthly income = $2500

We have to find the total debt ratio

We know that total debt ratio is given by

Debt ratio =\frac{total\ obligation}{total\ income}=\frac{$1100}{$2500}=0.44=44%

So option (c) will be the correct option

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A friend offers you a Coke, a Dr. Pepper, or a 7-Up. You don't like Coke, so after some thought, you take the Dr. Pepper. What i
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<span>An opportunity cost is the value or benefit that must be given up to acquire or achieve something else. In this case whatever you choose (Coke, Dr.Pepper or 7-UP) everything would be free , at zero cost. This means that the opportunity cost in this case is zero, because the drink is free.</span>
4 0
2 years ago
At meetings of the quality team, Juan is nervous about suggesting ideas
SpyIntel [72]

Answer:

The correct option is;

D. Prepare by studying problems ahead of the meeting and listening carefully

Explanation:

Positive workplace behaviors in the meetings include preparation for the meeting to make the meeting productive for you and the other participants by ensuring;

1) Understanding the purpose of the meeting

2) Find out about the meeting agenda

3) To prepare for meetings

4) Make adequate preparation for the meeting

5) Know other attendees

6) Acquire and send out relevant information

It is important to study the problems ahead of the meeting and listen carefully to avoid being the one to ask others what the meeting was for when you join the meeting

Ensure the purpose for being at the meeting is clear and the meeting agenda is well known as well as what knowledge is expected and what is to be discussed.

6 0
3 years ago
Read 2 more answers
4.The following information is available for Lock-Tite Company, which produces special-order security products and uses a job or
mojhsa [17]

Answer:

The overview of the problem is listed throughout the section below on explanation.

Explanation:

The Journal entry is given below:

<u>No       Transaction        General journal      Debit($)    Credit($)</u>

1                 1                Overhead of factory   120000      

                                  Some other accounts                    120000

2               2           Process inventory's work  185500

                           (345000-80000)\times 70 \ percent                      

                                  Overhead of a factory                    185500

8 0
3 years ago
What is the broad term that refers to all other terms listed below. The term can apply to all divisions and departments​ (such a
Vladimir79 [104]

Answer:

C. Policies

Explanation:

Policy is the broad term that can apply to all divisions and departments​ (such as​ "We are an equal opportunity​ employer"), or to a single department​ ("Employees in this department must take at least one training and development course each​ year").

Policy can be defined as the set of rules, ideas and principles of action that are adopted to guide an organization.

6 0
3 years ago
If a finance lease contains a bargain purchase option, the lessee should amortize the leased asset: Multiple Choice Over the ter
Finger [1]

Answer:

Over the economic life of the asset.

Explanation:

An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.

In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).

3 0
3 years ago
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