Clara comes to see you for a $25,000 loan. The payments will be $315. She rents for $725. Her insurance is $220. She has a credit card with a $5500 limit and $65 payment, and a credit line with a$7000 limit and payment of $180. She earns $50,000. Her income taxes are $9,500, CPP & El are $2800. What is Clara's TDS?38.85%30.84%36.12%O Not enough information. Can not be determined.

TDS total debt service ratio is very important while giving loans and mortgages and it must be…

Clara comes to see you for a $25,000 loan. The payments will be $315. She rents for $725. Her insurance is $220. She has a credit card with a $5500 limit and $65 payment, and a cr $7000 limit and payment of $180. She earns $50,000. Her income taxes are $9,500, CPP & El are $2800. What is Clara's TDS? 38.85% 30.84% 36.12% Not enough information C

Clara comes to see you for a $25,000 loan. The payments will be $315. She rents for $725. Her insurance is $220. She has a credit card with a $5500 limit and $65 payment, and a cr $7000 limit and payment of $180. She earns $50,000. Her income taxes are $9,500, CPP & El are $2800. What is Clara's TDS? 38.85% 30.84% 36.12% Not enough information C

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Rafaela has a gross monthly income of $3,900. She has 15 remaining payments of $189 on a used car. The taxes and insurance on a house Rafaela may purchase are $115 per month. What maximum monthly payment does the bank's loan officer feel that Rafaela can afford? The maximum monthly payment includes principal and interest for the amount of the loan as well as the taxes and insurance. Round your answer to the nearest cent.
Linda is buying a car for $12,560.00. Her down-payment is $3000.00 followed by 24 monthly payments of $450.00 each. What is the effective interest rate that Linda is paying?
Jill wants to buy a home. Her monthly gross income (GI) is $7,000. She currently has a car payment of $480/month. The bank wants her to escrow $450/month for taxes (T) and insurance (HI). The bank requires the following income and loan ratios; a minimum down payment of 20%, a P&I as a percent of GI ratio < 25%, a P, I, T, & HI as a percent of GI ratio < 28%, a P, I, T, HI and other debt service as a percent of GI ratio < 36%, and a LTV ratio of 80% or less. What is the maximum market value of a home that Jill could purchase given a current market rate on a 30-year fixed rate loan is 4.75%?
Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She has a down payment of $500.00 and is able to negotiate an interest rate of 5% from her bank. Rayleene is trying to decide whether to get her loan for 3 or 4 years. What is the Amount of Principal.What is the Monthly Payment for a 3 year loan & a 4 year loan.What are the Total Payments.What is the Total Cost of the Loan.Should Rayleene take her car loan out for 3 or 4 years? Why?Gary is buying a used car from a dealership for $15,499.00 so he needs to pay both GST and PST. His down payment is $3000.00, and he is approved for a 4.75% loan.What is the GST.What is the PST.What is the Amount of Principal.What is the Monthly Payment for a 3 year loan & a 5 year loan.What are the Total Payments.What is the Total Cost of the Loan.Should Gary take his car loan out for 3 or 5 years? Why?
Steve has maxed out his credit card and owes $22,000. The annual interest on his credit card is 18.25%. a. The minimum payment for some credit cards is 2% of what you owe. What is Steve’s minimum payment? b. Suppose Steve continues to pay the amount found in part a, how long until he has paid off her credit card dept? Assume he doesn’t charge anything else. c. What is the total amount he spent to cover the $22,000 debt? d. Suppose Steve decides to pay $750 per month, how long until he pays off the credit card? e. How much does she save by paying $750 a month? f. Suppose Steve is getting married in 25 months, what should he pay every month to clear hiscredit card debt by the time he is married?
Claire needs to borrow $5000 to pay for NHL season tickets for her family. She can borrow from the credit union (36 monthly payments of $151.54 each). Find the APR for each loan. The APR for the finance company loan is? The APR for the credit union is?
please answer with correct calculations and explanations. QUESTION: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a year mortgage at 8% and 4 discount points. Kari made a deposit of $30,000 (applied to the doen payment) when the sales contract was signed. Kari also has three expenses: credit report, $70; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $500. Find the closing costs (in $).
Andy's yearly income is $40,000. What would Andy's debt load be on a $15,000 personal loan? Would Andy's debt load follow the guidelines of the 20/10 rule? Provide a reason for Your answer.
Alan and Samantha Brown have a mortgage with the Bank of America. The bank requires the Browns to pay their homeowner's insurance, property taxes, and mortgage in one monthly payment to the bank. Their monthly mortgage payment is $1,450.30, their semi-annual property tax bill is $6,470, and their annual homeowner's insurance bill is $980. How much is the monthly payment they make to Bank of America?
Sally is ready to purchase her first home. The bank has advised her that they need to work on some ratios before letting her know if the mortgage is approved. What is Sally's Gross Debt Service (GDS) ratio based on the information she has provided? Annual gross salary: $85,000 Estimated monthly mortgage payment: $1,650 Estimated annual property taxes: $1,500 Estimated monthly heating: $150 Estimated annual condo fees $500 Monthly student loan $70 Monthly car loan $120 Monthly loan to parents $50 Monthly home renovation loan payments $150 Monthly furniture loan $25 A 24% 34% C 27% D 32% E 16%
Sally is ready to purchase her first home. The bank has advised her that they need to work on some ratios before letting her know if the mortgage is approved. What is Sally's Gross Debt Service (GDS) ratio based on the information she has provided? Annual gross salary: $85,000 Estimated monthly mortgage payment: $1,650 Estimated annual property taxes: $1,500 Estimated monthly heating: $150 Estimated annual condo fees $500 Monthly student loan $70 Monthly car loan $120 Monthly loan to parents $50 Monthly home renovation loan payments $150 Monthly furniture loan $25 A 24% 34% 27% 32% E 16%
Sara made 10 payments of $108.50 to the credit union. The original loan amount was $1000. After she had made all the payments, how much interest did she pay?

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