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ed and his wife have applied for a $350,000 mortgage to be amortized over of 2.8% and a term of 5 years. Payments will be monthly. The Bank of Can ed insured mortgage rate is 5.25%. The couple expect monthly heating and nt to $325. Their gross combined monthly income is $12,000. What is thei SDS) ratio?

ed and his wife have applied for a $350,000 mortgage to be amortized over of 2.8% and a term of 5 years. Payments will be monthly. The Bank of Can ed insured mortgage rate is 5.25%. The couple expect monthly heating and nt to $325. Their gross combined monthly income is $12,000. What is thei SDS) ratio?

Essentials Of Investments
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
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A6)
Mohammed and his wife have applied for a $350,000 mortgage to be amortized over 25 years at a fixed rate of 2.8% and a term of 5 years. Payments will be monthly. The Bank of Canada benchmark 5-year fixed insured mortgage rate is 5.25%. The couple expect monthly heating and property taxes will amount to $325. Their gross combined monthly income is $12,000. What is their Gross Debt Service (GDS) ratio? A 16.22% B 19.34% 20.09% D 22.74%
Transcribed Image Text:Mohammed and his wife have applied for a $350,000 mortgage to be amortized over 25 years at a fixed rate of 2.8% and a term of 5 years. Payments will be monthly. The Bank of Canada benchmark 5-year fixed insured mortgage rate is 5.25%. The couple expect monthly heating and property taxes will amount to $325. Their gross combined monthly income is $12,000. What is their Gross Debt Service (GDS) ratio? A 16.22% B 19.34% 20.09% D 22.74%
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