Jake has total fixed monthly expenses of $1,350 and his gross monthly income is $3,825. What is his debt-to-income ratio? How does his ratio compare to thedesired ratio?Debt-to-income ratio = =% (Round to the nearest integer as needed.)Jake's ratio isthe maximum percentage.belowequal toabove

A financial tool used by lenders to evaluate a borrower's capacity to manage monthly debt payments…

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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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Julian and Julie are meeting with the Bank of Montreal. They know that the bank will be looking at their ratios and they do not feel very confident. A lot is riding on this meeting as it would determine whether they can buy the condo of their dreams or not. Calculate their Total Debt Service (TDS) ratio based on the information provided. • Julian's annual gross salary: $90,000 • Julie's annual gross salary: $91,000 Monthly mortgage payment: $2,150 • Annual property taxes: $2,400 Monthly heating: $160 • Annual condo fees $600 • Julian's monthly student loan $70 • Julie's monthly car loan $125 . Monthly furniture loan $30 . . Select one: O a. 35% O b. 20% O c. 25% O d. 22% O e. 18%
Jon, age 48, earns $65,000 per year from his employer. Jon saves $15,000 per year for retirement and pays $12,000 per year for his home mortgage. Given this information and considering that Jon will have eliminated his mortgage debt before retirement, what is Jon's expected wage replacement ratio during retirement? A. 16%. B. 81%. C. 46%. D. 89%.
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Jake has total fixed monthly expenses of $1,350 and his gross monthly income is $3,875. What is his debt-to-income ratio? How does his ratio compare to the desired ratio?
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. Suppose someone his earned income per year is $7000, and the income guarantee, IG, is $5000. And assume that the tN, the rate at which the transfer is received by him is 50%. Then the disposable income of the recipient in relation to earned income is:
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Jake has total fixed monthly expenses of $1,350 and his gross monthly income is $3,825. What is his debt-to-income ratio? How does his ratio compare to the desired ratio? Debt-to-income ratio=% (Round to the nearest integer as needed.) Jake's ratio is the maximum percentage. below equal to above