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Julli [10]
3 years ago
9

g Duane Miller wants to know what price home he can afford. His annual gross income is $67,200. He has no other debt expenses an

d expects property taxes and insurance to cost $320 per month. He knows he can get a 8.50%, 15 year mortgage so his mortgage payment factor is 9.85. He expects to make a 25% down payment. What is Duane's affordable home purchase price
Business
1 answer:
Ahat [919]3 years ago
8 0

Answer: $206835.87

Explanation:

Based on the following information, Duane's affordable home purchase price will be calculated thus:

Step 1: $67200/12 = $5600

Step 2: $5600 × 33% = $1848

Step 3: $1848 - $320 = $1528

Step 4: ($1528/9.85) × 1000 = $155126.9

Step 5: $155126.9/(1 - 25%) = $206835.87

Note that for step 5, the affordable home purchase price was calculated as:

= Affordable mortgage amount/(1 - down payment%)

Duane's affordable home purchase price is $206835.87.

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Suppose that a country's annual growth rates over a 10-year period are as follows: year growth rate 1 5% 2 3 3 4 4 – 1 5 – 2 6 2
tino4ka555 [31]
A.) The country's trend rate of growth over this period was 4.2% = (2+3+3+4+4% 1+5<span>% </span><span>2+6 +2+7+3+8+4+9+6+10+3/18)
   
b.)6-9 due to positive and increase.</span>
3 0
3 years ago
Watunga County Bank agrees to lend Vaughn Granite Company $599000 on January 1. Vaughn Granite Company signs a $599000, 8%, 9-mo
tangare [24]

Answer:

DR Cash                             $599,000

CR Notes Payable                                $599,000

Explanation:

As this is the entry for the issuance of the note, interest will not be recorded as it is incurred as during the loan period.

Entry will be;

Date                  Details                                                 Debit                   Credit

Jan 1                  Cash                                                  599,000

                          Notes Payable                                                               599,000

5 0
2 years ago
"Net income for the period was $200,000. The retained earnings account had a beginning balance of $25,000. If the company paid d
solmaris [256]

Answer:

Retained earning balance at the end would be = $205,000

Explanation:

Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid

The net income would increase the balance of the retained earnings hence it is added to it.

The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.

So applying this to the question, we have

Retained earning balance at the end would be:

25,000 + 200,000 - 20,000 = $205,000

Retained earning balance at the end would be = $205,000

3 0
3 years ago
How are payroll taxes different from personal income taxes?
marta [7]
D) They pay for specific social programs rather than general government activities.
5 0
2 years ago
Which of the following is not considered a legitimate expense of a partnership? a Interest paid to partners based on the amount
never [62]

Answer:

a Interest paid to partners based on the amount of invested capital.

Explanation:

A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.

Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.

Legitimate expenses include: cost of sales, staff cost, administrative costs, advertising costs, and professional expenses like hiring an accountant.

8 0
3 years ago
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