Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hector and Maria Montez Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three

image text in transcribed
image text in transcribed
image text in transcribed
Hector and Maria Montez Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month, and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements. Savings account: $1,200 Checking account: $800 Credit card balance: $1,000 Car loan balance: $12,000 Car market value: $8,000 Furniture, market value: $2,000 Stocks and bonds: $10,000 What is their current net worth? $35,000 $9,000 $13,000 $(13,000) $22,000 Hector and Maria Montez Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month, and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements. Savings account: $1,200 Checking account: $800 Credit card balance: $1,000 Car loan balance: $12,000 Car market value: $8,000 Furniture market value: $2,000 Stocks and bonds: $10,000 Assuming that they have no current bills other than those that are listed, what is their current ratio? 0.59 times 2,000/1,000 2 times Both 2,000/1,000 and 2 times are correct. Not enough information available Hector and Maria Montez are trying to figure out their financial health. They will pay off their car loan in three years, their gross household income is $3,800 per month and they receive $75 per month in interest income from their investments. They have listed the following items from their most recent statements. Savings account: $1,200 Checking account: $800 Credit card balance: $1,000 Car loan balance: $12,000 Car market value: $8,000 Furniture; market value: $2,000 Stocks and bonds: $10,000 What is their debt ratio? 2 times 1.69 times 0.59 times 169 percent 0.59 percent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Empirical Techniques In Finance

Authors: Ramaprasad Bhar, Shigeyuki Hamori

1st Edition

3642064175, 978-3642064173

More Books

Students also viewed these Finance questions

Question

1. What is the predominant purpose test? 2. Why is this important?

Answered: 1 week ago

Question

1. What is meant by Latitudes? 2. What is cartography ?

Answered: 1 week ago