Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the debt payments-to-disposable income ratio? Liquid assets = $10,000 Home value = $210,000 Investment assets = $90,000 Personal property = $20,000 Short-term debt

What is the debt payments-to-disposable income ratio?

Liquid assets = $10,000

Home value = $210,000

Investment assets = $90,000

Personal property = $20,000

Short-term debt = $5,500

Mortgage debt (30 yr.) = $170,000

Short-term debt payments = $250/month

Mortgage debt payments = $1,300/month

Gross income = $9,000/month

Disposable income = $6,800/month

Expenses = $6,000/month

PLEASE SHOW WORK

What is the debt payments-to-disposable income ratio? Is it (1300+250) / 6800 ?

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

Introductory Econometrics For Finance

Authors: Chris Brooks

3rd Edition

1107661455, 9781107661455

More Books

Students also viewed these Finance questions

Question

Does your strategic intent lay out the priorities?

Answered: 1 week ago