Problems suspicion 1 A few years ago, Michael outfox purchased a nucleotide for $100,000. Today the home is worth $150,000. His remain mortgage balance is $50,000. Assuming Michael can borrow up to 80 percent of the market treasure of his home, what is the maximal tally he can borrow? 80% of market value ($150,000×80%)$120,000 (-) outstanding mortgage loan$ 50,000 $ 70,000 ? Maximum home law loan Michael can borrow is $ 70,000. Question 2 Louise McIntyres periodic gross income is $2,000. Her employer withholds $400 in federal, dry land and local income taxes and $clx in Social Security taxes per month. Louise contributes $80 per month for her IRA. Her periodical credit earningss for Visa, Master circuit wit and Discover cards are $35, $30 and $20 respectively. Her periodic payment on an automobile loan is $285. What is Louises debt payments-to-income equilibrium? Is Louise living within her operator? Explain. Louises debt payments-to-incom e dimension = periodical Debt PaymentsNet Monthly Income ×100% =$30+$35+$20+$285$2,000-$400-$160-$80 ×100% =27.21% ? Louises debt payments to income ratio are $370 to $1360, or 27.21 percent. This ratio exceeds the recommended 20 percent figure, which shows that she does non living within her means and was overextended.

The debt payment has become a burden to her with her current nett income. Her maximum monthly loan and credit card payments should not be over $272, which is the 20 percent of her net income. Question 3 Robert Thumme owns a $140,000 townhouse and still has an unpaid mortgage of $110,000. In adjunct to his mortgage he has the following liabilities: ! Visa| $565| Master banknote| $480| Discover Card| $395| Education Loan| $920| Personal Bank Loan| $800| gondola Loan| $4,250| Total| $7,410| | | Roberts net worth (not including his home) is some $21,000. This equity is in mutual funds, an automobile, a coin collection, furniture, some other personal property. What is...If you want to get a full essay, order it on our website:
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