Kimberly has the following debts. - A 30-year mortgage on a house she bought for $275,000. She
Question:
Kimberly has the following debts. - A 30-year mortgage on a house she bought for $275,000. She made a 10% down payment on this house, and her mortgage APR is 6.075%. - PMI on her mortgage. Her PMI premium (interest rate) is 0.95%. - A subsidized student loan for $22,000. She is repaying this loan via standard repayment at 4.04% APR. - $10,200/year in property tax - $540/semiannually for homeowner's insurance - $205/month to repay a lease on her car - $825/semiannually for car insurance - $240/month for electricity and heat combined - $125/month for cell phone - $210/month total for cable/internet - $345/quarter total for water/sewer - $120/quarter for garbage - A credit card minimum payment. Her credit card has a 20.49% APR, a 31-day billing cycle, and uses the PREVIOUS BALANCE method. Her previous balance this month was $7,819.20, and her ending principal was $5,266.13. 2. Calculate Kimberly's debt-to-income (D/I) ratio, correct to the nearest hundredth of a percent. Show all work.
What is the maximum amount of monthly debt Kimberly can have while still being considered financially healthy?
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman