Business, 17.02.2020 22:29, dilly2277

Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Madeline is living at home and works in a shoe store, earning a gross income of $820 per month. Her employer deducts a total of $145 for taxes from her monthly pay. Madeline also pays $95 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $120 per month. Help Madeline make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.)

Answers: 2

Show answers

Answers

answered: micahsocool23

Conclusion: Madeline should not ask for the loan

1. With college loan:

DTI = 43.9%

2. Without the college loan

DTI = 29.3%

Explanation:

Calculate the DTI for both scenaries, with and without the college loan.

DTI = (monthly debt payments) / (gross monthly income) × 100

With college loan W/O college loan

Monthly debt payments($)

Taxes 145 145Credit card 90 95College loan 120 0

Sub-total 360 240

Montly gross income ($) 820 820

1. With college loan:

DTI = (360/820)×100 = 43.9%

2. Without the college loan

DTI = (240/820)×100 = 29.3%

There are several rules to assess if a DTI is good or not.

Some of those rules include that:

A DTI without mortage should be below 28%, thus 29.3% is slightly over the limit.A DTI with mortage should be below 43%, thus 43.9% is slightly over the lilmit.The 20% rule states that the debt without a mortage should be no more than 20 percent of the annual income after taxes.

Since the DTI is already higher than 20% the conclusion is that Madeline should not ask for the loan.

answered: Guest

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

hope it

answered: Guest

answer(eu) is the correct answer;

Other questions on the subject: Business

Business, 22.06.2019 07:10, Emptypockets451

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.

Answers: 1

continue

Business, 22.06.2019 20:00, 2965276513

Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it. g

Answers: 2

continue

Business, 22.06.2019 20:30, zachzach28280

Almeda products, inc., uses a job-order costing system. the company's inventory balances on april 1, the start of its fiscal year, were as follows:

Answers: 2

continue

Business, 22.06.2019 23:30, bearbri4520

The upper-level managers of synergy technology are meeting for the week to look at the long-term company goals and overall direction of the organization. the ceo has expressed her concern over the economy and has told her managers to look closely at the environment outside the organization before making decisions and to be future oriented. in this meeting, top managers of synergy are

Answers: 2

continue

Do you know the correct answer?

Madeline Rollins is trying to decide whether she can afford a loan she needs in order to go to chiro...