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Rina8888 [55]
3 years ago
9

Two months ago, Lisa was honorably discharged from the Air Force where she spent four years training as an airplane mechanic. Af

ter discharge, she relocated to take a 40 hour per week apprentice mechanic job with a major airline company where she earns $18 an hour. Last month, her husband Dave, who has worked the past two years as a registered nurse, found a nursing job with a local hospital making $625 per week. They just bought a new car and pay $400 each month on that loan and have no other monthly debts.
What is the maximum mortgage payment (PITI) a lender would allow for a conventional loan based on the housing expense ratio?
​
Business
1 answer:
Colt1911 [192]3 years ago
7 0

Answer:

The maximum mortgage payment (PITI) a lender would allow for a conventional loan based on the housing expense ratio is:

$1,506.40

Explanation:

a) Data and Calculations:

Lisa works 40 hours at $18 an hour

Lisa weekly income = 40 * $18 = $720

Lisa monthly income = 40 *$18 * 4 = $2,880

Dave weekly income = $625

Dave's monthly income = $625 * 4 = 2,500

Total joint monthly income =            $5,380

b) If Lisa and Dave, her husband, file jointly for taxes, then the maximum mortgage payment (PITI) they can make is 28% of the gross income.

Therefore PITI = $5,380 * 28% = $1,506.40

c) The housing expense ratio is the percentage of your gross monthly income devoted to housing expenses, which should not exceed 36% of your monthly or annual gross income.  According to the general rule, the household expense payments, primarily rent or mortgage payments, cannot exceed more than 28% of the monthly or annual income.

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Answer:

$4,000

Explanation:

Each additional labor can produce 4 computers and each computer is sold for $1,000. This mean that the value of the marginal product of labor is $4,000 (1,000*4). At equilibrium, the value of marginal product of labor equals the wage rate. Therefore, the marginal factor cost is $4,000.

6 0
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A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $16, $24, and $55. The nu
tatyana61 [14]

Answer:

The 1-day rate of return on the index = 5.36%

Explanation:

Index Value = Sum of (Outstanding Shares*Share Price)

      q          p           mv              q1            p1          mv1

640,000   16    10240000      640000    20     12800000

540,000   24   12960000      540000    22     11880000

240,000   55   <u>13200000</u>  240000    57     <u>13680000</u>

                        <u>36400000 </u>                                <u>38360000</u>

Note: q/q1 = no of shares, p = price per share, mv/mv1 = market value, p1 = changed price per share

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3 0
3 years ago
How can a business support the community​
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Answer:

It can help in many ways one way being they can hold or help hold events in the community.

Explanation:

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The answer is that it referred to "task roles".

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3 years ago
Prepare journal entries to record the following four separate issuances of stock. A corporation issued 7,000 shares of $10 par v
german

Answer:

DEBIT $ 84.000 Cash  

CREDIT $ 70.000 Common Stock  

CREDIT $ 14.000 Paid-In Capital in Excess of Par Value

 

DEBIT $ 43.000 Promotion Expenses  

CREDIT $ 3.500        Common Stock  

CREDIT $ 39.500 Paid-In Capital in Excess of Par Value  

DEBIT $ 43.000 Promotion Expenses  

CREDIT $ 43.000 Common Stock  

DEBIT $ 218.000 Cash  

CREDIT $ 175.000 Preferred Stock  

CREDIT $ 43.000 Paid-In Capital in Excess of Par Value  

Explanation:

DEBIT $ 84.000 Cash  

CREDIT $ 70.000 Common Stock  

CREDIT $ 14.000         Paid-In Capital in Excess of Par Value  

As the company declared a par value, it's necessary to split the equity in two accounts, Common Stock  

for the stated value ($70,000) and the Paid in Capital for the excess of cash over the Common Stock ($14,000)  

DEBIT $ 43.000 Promotion Expenses  

CREDIT $ 3.500        Common Stock  

CREDIT $ 39.500 Paid-In Capital in Excess of Par Value  

As the company declared a par value, it's necessary to split the equity in two accounts, Common Stock  

for the stated value ($3,500) and the Paid in Capital for the excess of the price over the Common Stock ($39,500)  

In this case there is no cash because the shares are in exchange for the promotions effort (Expenses)

DEBIT $ 43.000 Promotion Expenses  

CREDIT $ 43.000 Common Stock  

As the company declared no-par value, it's not necessary to split the equity in two accounts, full value to common stocks account

In this case there is no cash because the shares are in exchange for the promotions effort (Expenses)

DEBIT $ 218.000 Cash  

CREDIT $ 175.000 Preferred Stock  

CREDIT $ 43.000 Paid-In Capital in Excess of Par Value  

Last escenario the company declared preffered stock and not Common ones, so the equity account in this case it's Preferred stock  

as the par value it's $100 ($175,000) to Preferred Stock and Paid in Capital for the excess of the price ($43,000)  

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