1.Cecilia and Nathan estimate their total cost for a vacation in Australia to be $14,775.a. What percentage is this cost of their combined gross monthly income of $8775?b. If 72% of their gross monthly income is already consumed by rent, taxes, car payments and otherregular living expenses, what percentage is the trip's cost of their remaining annual disposable income

SOLUTION TOTAL COST IS THE TOTAL EXPENDITURE INCURRED TO PRODUCE SOME TYPE OF OUTPUT.

Answered: 1.Cecilia and Nathan estimate their…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Q1: An engineering graduate plans to buy a home. She has been advised that her monthly house and property tax payment should not exceed 34% of her disposable monthly income. After researching the market, she determines she can obtain a 25-year home loan for 6.95% annual interest per year, compounded monthly. Her monthly property tax payment will be approximately $175. What is the maximum amount she can pay for a house if her disposable monthly income is $2400?
4.Ben and Jen are looking at a home that has an annual property tax of $3700 and an average heating cost of $225.00 per month. Ben on average works 40 hours per week and makes $40.70 per hour. Jen receives a salary of $4050.00 per month. a. According to the GDSR formula, what is the maximum monthly mortgage payment they can afford? b. What price how house could they afford if they have a down payment of $25 000 saved up and take a mortgage for 25 years with monthly payments at an interest rate of 3.5% compounded monthly?
Purchasing a Home- The Johnsons have accumulated a nest egg of $40,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $2,400 per month in monthly payments (to take advantage of the tax deduction) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $3,000. If local mortgage rates are 5.5% compounded monthly for a conventional 30-year mortgage, what is the price range of houses that they should consider?
Maddie Marlow and Jonah Font have an adjusted gross income of $174,200. They are looking for a new house. Their monthly mortgage payment would be $1,710. Their annual property taxes would be $12,350 and their annual homeowner's premium would be $1080. Calculate their front-end ratio.Front-end ratio = Monthly housing expenses / Monthly gross income
How is the housing expense ratio calculated? The monthly PITI payment is divided by the borrower's monthly net income. The monthly PITI payment is divided by the borrower's monthly gross income. O The monthly PITI payment plus other monthly obligations are divided by the monthly gross income. The borrower's monthly gross income is divided by the monthly PITI payment.
You are the sole wage earner in a "typical family," with $102,000 gross annual income. Use the income replacement method to determine how much life insurance you should carry. (Omit the "$" sign In your response.) Value of Insurance $
Daniel and Jan agreed to pay $556,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $70,000 down payment. They have a 25-year mortgage at a fixed rate of 638638 %. (Use Table 15.1.) a. How much is their monthly payment? Note: Round your answer to the nearest cent. Monthly payment: b. After the first payment, what would be the balance of the principal? Note: Round your answers to the nearest cent. Payment number Portion to interest portion to principal Balance of loan outstanding 1 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625…
Conchita Martinez will have a monthly interest and principal payment of $1,867.96. Her monthly real estate taxes will be $58.27 and her monthly homeowner's insurance payments will be $85.59. If her gross monthly income is $6,786.26, find the housing ratio. The housing ratio is (Round to two decimal places as needed.)
Conchita Martinez will have a monthly interest and principal payment of $1,820.68. Her monthly real estate taxes will be $57.06 and her monthly homeowner's insurance payments will be $89.47. If her gross monthly income is $6,778.27, find the housing ratio. Question content area bottom Part 1 The housing ratio is= (Round to two decimal places as needed.)
Calculate the paychecks below: 1. Bob is paid an annual salary of $50,000 and taxes are 20%. a. How much is his GROSS Monthly Pay? b. How much is withheld for taxes? c. What is his NET Monthly pay? 2 Manl
Catherine's monthly expenses on food, transportation, and rent are in the ratio 2 : 3 : 10, respectively. If he spends $210 on food, how much does he spend on transportation and rent? Round to the nearest cent a. What is the transportation amount? b. What is the rent amount? Your friend from Australia purchased a computer for C$3,900 while visiting you for the holidays, when the exchange rate was C$1 = A$1.0285. If the exchange rate changed to C$1 = A$1.0484, what was the change in value of the computer in Australian dollars?
9. Penny wants to save $2500 in one year. What amount must she save from each paycheque if she is paid bi- weekly? a. $104.17 b. $96.16 c. $48.08 d. $208.33

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