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Sedbober [7]
3 years ago
10

Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $4,850. A. $388 b. $7

76 c. $970 d. $1,358 Please select the best answer from the choices provided A B C D.
Business
1 answer:
allsm [11]3 years ago
7 0

Recurring debt is the form of a due payment that occurs continuously as the amount of the money cannot be cancelled at the debtor's request it consists of the loan payment, alimony and child support.

$388 is the maximum allowable recurring debt.

<h3>What is the 28:36 ratio and how it is calculated?</h3>

The ratio states that a family should expend the utmost of 28% of its monthly earnings on entire housing expenditures but not additionally than 36% on complete debt service.

Given,

Monthly income = $4,850

  • <u>Maximum expense on housing expense</u> = 28% of 4850

\dfrac{28 \% \times \$4850}{100\%} = \$1358

  • <u>Maximum expense on total debt service</u> = 36% of 4850

\dfrac{36 \% \times \$4850}{100\%} = \$1746

  • Therefore, the maximum allowable recurring debt with a monthly income of $4,850

\$1746 - \$1358 = \$388

Thus, option A. $388 is correct.

Learn more about the 28:36 ratio here:

brainly.com/question/18250434

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I will visit the sales manager first

Explanation:

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In a company, the significant cost components are inventory and operations costs. In this case, costs are risings reasonable. It signifies growth in production activities. The problem for the company is likely to be sales-related. Possible challenges in sales departments include.

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The NASAA Statement of Policy on Dishonest or Unethical Business Practices of Broker-Dealers and Agents includes prohibitions ag
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B) wash trades

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In the case when the wash trades are performed so it consists the simultaneous or near-simultaneous i.e. selling and the repurchase of the similar security for the motive of producing the trading activity due to which price rise. This is the form of how the market manipulates. The other options i.e. given in the question is not considered the market manipulation

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6 0
3 years ago
Oldham Corporation bases its predetermined overhead rate on a variable manufacturing overhead cost of $4.00 per machine-hour and
Rzqust [24]

Answer:

$21.42

Explanation:

The computation of fixed component in the predetermined overhead rate is shown below:-

Fixed component in the predetermined overhead rate = Fixed Overhead ÷ Machine Hours

= $87,822 ÷ 4,100

= $21.42

Therefore for computing the fixed component in the predetermined overhead rate we simply divide the fixed overhead by machine hours.

And all the other information i.e given is not relevant. Hence, ignored it

5 0
3 years ago
Audits of financial statements are designed to obtain reasonable assurance of detecting misstatement due to?
alisha [4.7K]

Answer:

Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts.

<h3>How does the auditor obtain reasonable assurance?</h3>
  • In order to obtain reasonable assurance, the auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion.
  • Reasonable assurance is obtained when the auditor has thereby reduced audit risk to an acceptably low level.

To learn more about it, refer

to brainly.com/question/24553900

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5 0
1 year ago
Your grandmother has been putting $1,000 into a savings account on every birthday since your first (that is, when you turned one
lukranit [14]

Answer:

The amount in the account on the  18th birthday = $ 25,645.41

Explanation:

<em>The investment can be described as an ordinary annuity. An ordinary annuity is a series of equal periodic cash flows that  occur for a certain number of years</em>

<em>The amount the invest will accrue principal plus interest is known as the f</em><u><em>uture value</em></u><em> of the annuity</em>

It is determined as follows:

<em>FV = A ×  ( (1+r)^n -1  ) / r</em>

FV - ?,  A = 1000.  r - 4%- 0.04, n - 18

FV = 1,000× ( ( (1.04)^(18) - 1 )/ 0.04

    = 1,000 ×  25.64541288

    = $ 25,645.41

The amount in the account on the  18th birthday = $ 25,645.41

5 0
3 years ago
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