Question
Jasmine and their spouse are considering purchasing a larger house for their growing family.Below is a summary of their current combined income and expenses. Combined
Jasmine and their spouse are considering purchasing a larger house for their growing family.Below is a summary of their current combined income and expenses.
Combined Salary (Gross Annually)
$125,000
Monthly Mortgage Payment
$2,600
Master Card (minimum monthly payment)
$1,500
Utilities (Monthly - Heat and Electricity)
$250
Car Loan Payment (Monthly)
$550
Cable TV (Monthly)
$75
Cell-Phone Plan (Monthly)
$150
Line of Credit (minimum monthly payment)
$350
Property Tax (annual)
$3,900
1#What is Jasmine's family average monthly income?
2#What is their monthly shelter cost?
3#What is their Gross Debt Service (GDS) Ratio?
4#Is this an acceptable GDS?
5#What are their monthly debt payments?
6#What is their Total Debt Service (TDS) Ratio?
7#Is this an acceptable TDS?
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
