IDNLearn.com: Your go-to resource for finding expert answers. Discover prompt and accurate answers from our community of experienced professionals.
Sagot :
Let's break down the problem step-by-step to understand how we arrive at the answer:
1. Understand the Given Information:
- Annual gross income: [tex]$509,750 - Monthly mortgage payment: $[/tex]1,300
- Monthly other expenses: [tex]$1,360 2. Convert Annual Income to Monthly Income: - To do this, we divide the annual gross income by 12 (since there are 12 months in a year). - \( \text{Monthly income} = \frac{\$[/tex]509,750}{12} \)
3. Calculate Monthly Income:
- [tex]\( \text{Monthly income} = \$42,479.17 \)[/tex]
4. Calculate the Front-End Ratio:
- The front-end ratio is calculated by dividing the monthly mortgage payment by the monthly income, and then multiplying by 100 to convert it to a percentage.
- [tex]\( \text{Front-End Ratio} = \left( \frac{\$1,300}{\$42,479.17} \right) \times 100 \)[/tex]
5. Calculate the Total Debt Ratio (Back-End Ratio):
- The total debt ratio includes both the monthly mortgage payment and the monthly other expenses.
- [tex]\( \text{Total Debt Ratio} = \left( \frac{\$1,300 + \$1,360}{\$42,479.17} \right) \times 100 \)[/tex]
- Simplify this to [tex]\( \text{Total Debt Ratio} = \left( \frac{\$2,660}{\$42,479.17} \right) \times 100 \)[/tex]
6. Simplify the Calculations:
- After performing these calculations, you will get the Front-End Ratio and Total Debt Ratio to the nearest whole number percentages.
Thus, the answers are:
- Front-End Ratio: 3%
- Total Debt Ratio: 6%
Based on your provided choices and calculations:
- The correct answer for the front-end ratio to the nearest percentage is:
A. 3
Feel free to ask any clarification questions if needed!
1. Understand the Given Information:
- Annual gross income: [tex]$509,750 - Monthly mortgage payment: $[/tex]1,300
- Monthly other expenses: [tex]$1,360 2. Convert Annual Income to Monthly Income: - To do this, we divide the annual gross income by 12 (since there are 12 months in a year). - \( \text{Monthly income} = \frac{\$[/tex]509,750}{12} \)
3. Calculate Monthly Income:
- [tex]\( \text{Monthly income} = \$42,479.17 \)[/tex]
4. Calculate the Front-End Ratio:
- The front-end ratio is calculated by dividing the monthly mortgage payment by the monthly income, and then multiplying by 100 to convert it to a percentage.
- [tex]\( \text{Front-End Ratio} = \left( \frac{\$1,300}{\$42,479.17} \right) \times 100 \)[/tex]
5. Calculate the Total Debt Ratio (Back-End Ratio):
- The total debt ratio includes both the monthly mortgage payment and the monthly other expenses.
- [tex]\( \text{Total Debt Ratio} = \left( \frac{\$1,300 + \$1,360}{\$42,479.17} \right) \times 100 \)[/tex]
- Simplify this to [tex]\( \text{Total Debt Ratio} = \left( \frac{\$2,660}{\$42,479.17} \right) \times 100 \)[/tex]
6. Simplify the Calculations:
- After performing these calculations, you will get the Front-End Ratio and Total Debt Ratio to the nearest whole number percentages.
Thus, the answers are:
- Front-End Ratio: 3%
- Total Debt Ratio: 6%
Based on your provided choices and calculations:
- The correct answer for the front-end ratio to the nearest percentage is:
A. 3
Feel free to ask any clarification questions if needed!
Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Your search for answers ends at IDNLearn.com. Thanks for visiting, and we look forward to helping you again soon.