Mini-Case B (7 marks) Like every Canadian couple, Monir and Jackie carry quite a lot of debt, despite their high income. Both lease their cars at a combined cost of $2,300 a month. Their recently-built house carries a $1,000,000 mortgage at a rate of 2.4%, 5-year term, with monthly payments over 25 years. Theirs was not a conventional mortgage, but a high-ratio mortgage at a 90% loan-to-value ratio. Other monthly debt charges (line of credit, credit card, etc.) amount to $5,000 a month. Municipal taxes and heating costs amount to $900 a month. They were First Time Home Buyers. Part 3 (2 marks) What is the couple's Total Debt Service Ratio (TDS)? Ignore Monir's capital gains/losses. Calculation of mortgage payment (rounded to nearest dollar) Calculation of TDS Part 4 (1 mark) Monir drives a Range Rover that, at the time of signing of the lease, sold for $125,000. Assuming Monir made a $5,000 down payment. Other than a low down payment, identify two advantages of leasing versus purchasing a car. Advantages of Leasing versus Purchasing
Answers
Part 3; The couple's Total Debt Service Ratio (TDS) is (12,909.58 / X) × 100. Part 4; Advantages of leasing versus purchasing a car include; Lower Monthly Payments, and Less Maintenance and Repair Costs.
To calculate the Total Debt Service Ratio (TDS), we need to determine the couple's total debt payments as a percentage of their gross monthly income. The formula for TDS is:
TDS = (Total Monthly Debt Payments / Gross Monthly Income) × 100
The given information is as follows:
Lease payments for cars: $2,300 per month
Mortgage: $1,000,000 at a 2.4% interest rate, 5-year term, and monthly payments over 25 years (we'll calculate the monthly mortgage payment)
Other monthly debt charges: $5,000 per month
Municipal taxes and heating costs: $900 per month
First, let's calculate the monthly mortgage payment using an online mortgage calculator or formula. The monthly mortgage payment can be determined as;
Monthly Mortgage Payment = P × (r × \((1+r)^{n}\)) / (\((1+r)^{n-1}\))
Where;
P is the principal amount ($1,000,000)
r is the monthly interest rate (2.4% divided by 12)
n is the total number of payments (25 years multiplied by 12)
Plugging in the values, we get;
Monthly Mortgage Payment = $1,000,000 × (0.024/12 × (1 + 0.024/12)²⁵¹²) / ((1 + 0.024/12)²⁵¹² -1
Monthly Mortgage Payment ≈ $4,709.58
Now, let's calculate the Total Debt Service Ratio (TDS);
Total Monthly Debt Payments = Lease payments + Monthly Mortgage Payment + Other monthly debt charges + Municipal taxes and heating costs
Total Monthly Debt Payments = $2,300 + $4,709.58 + $5,000 + $900
Total Monthly Debt Payments = $12,909.58
Assuming their gross monthly income is X, we can calculate the TDS:
TDS = ($12,909.58 / X) × 100
Therefore, the couple's Total Debt Service Ratio (TDS) is (12,909.58 / X) × 100.
Advantages of leasing versus purchasing a car include;
Lower Monthly Payments; Lease payments are typically lower than monthly loan payments when purchasing a car. This can free up cash flow for other expenses or investments.
Less Maintenance and Repair Costs; Leased vehicles are often covered by warranties that can help reduce maintenance and repair costs. This can provide a peace of mind and save money in long run.
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Related Questions
Joe owns a business which produces wooden furniture he employs 20 workers in the production Department and three workers in the office is Joe pays all his workers wages which are calculated by time rate but he is thinking of changing to peace rate
Answers
Answer:
The peace rate will result in lower total wages than time rate.
Explanation:
Piece rate is a wages calculator in which labors are paid for the piece of work done by them. They are paid for the quantity of units produced irrespective of time consumed. Time rate is wage calculation method in which wages are calculated based on hours worked. The major disadvantage for this method is that labors can waste time making products due to securing high wage.
Underground Food Store has 4,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.50. The beef could be sold "as is" for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.70 per pound, and each pound could be sold for $6.40. What should be done with the beef, and why?
Answers
Answer: The beef should be roasted.
Explanation:
Sales revenue
Sell as is: 4000 × $3 = $12000
Processed further: = 4000 × $6.40 = $25600
Increase/Decrease in income: = $13600
Purchase cost:
Sell as is: 4000 × $4.50 = $18000
Processed further: = 4000 × $4.50 = $18000
Increase/Decrease in income: = $0
Cost of roasting:
Sell as is: 0
Processed further: = 4000 × $2.70 = $10800
Increase/Decrease in income: = -$10800
Net income = $13600 - $10800 = $2800
Since there is a net income of $2800 when they beef is roasted, therefore it should be roasted.
You are considering buying stock A. If the economy grows rapidly, you may earn 40 percent on the investment, while a declining economy could result in a 15 percent loss. Slow economic growth may generate a return of 3 percent. If the probability is 12 percent for rapid growth, 27 percent for a declining economy, and 61 percent for slow growth, what is the expected return on this investment? Round your answer to one decimal place.
Answers
Answer:
the expected return is 2.58%
Explanation:
The computation of the expected return is shown below:
= respective weights × respective returns
= 40% × 12% + -15% × 27% + 3% × 61%
= 0.048 - 0.0405 + 0.0183
= 0.0258
= 2.58%
hence, the expected return is 2.58%
Which style of decision making will consumers who develop brand loyalty use?
A.extensive decision making
B.limited decision making
C.routine decision making
D.opportunity based decision making
Answers
what is new zealand's current economic strategy ?
Answers
New Zealand's current economic strategy focuses on sustainable and inclusive growth. It includes investing in infrastructure, innovation, and skills development.
New Zealand's economic strategy is centered around sustainable and inclusive growth. This involves investing in infrastructure, innovation, and skills development to boost productivity and competitiveness. The government is also committed to reducing greenhouse gas emissions and transitioning to a low-carbon economy. To achieve this, they have implemented policies such as the Zero Carbon Act and the Emissions Trading Scheme. Another key aspect of the strategy is promoting regional development and reducing inequality, with initiatives such as the Provincial Growth Fund and the Wellbeing Budget.
New Zealand's economic response to the COVID-19 pandemic has also been guided by this strategy, with a focus on protecting jobs and businesses while also investing in areas such as healthcare and digital infrastructure. Overall, the goal is to create a strong and sustainable economy that benefits all New Zealanders.
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target audience → the group of people at whom advertisements are aimed
True
False
Answers
A 10-year corporate bond has a 6 percent coupon, a call premium of $60, and a first call date in year 4. Market interest rates are 6.5 percent and are expected to rise for an extended period. If you plan to hold the bond, which yield should you most consider before buying the bond
Answers
Answer:
YTC = 8.3%
Explanation:
you should calculate the yield to call (YTC)
YTC = {coupon + [(call value - market value)/n]} / [(call value + market value)/2]
but we first need to calculate the market value:
PV of face value = $1,000 / (1 + 6.5%)¹⁰ = $532.73
PV of coupons = $60 x 7.18883 (PV annuity factor, 6.5%, 10 periods) = $431.33
market price = $532.73 + $431.33 = $964.06
YTC = {60 + [(1,060 - 964.06)/4]} / [(1,060 + 964.06)/2] = 83.985 / 1,012.03 = 8.3%
a project that costs $2,400 to install will provide annual cash flows of $590 for the next 5 years. the firm accepts projects with payback periods of less than 5 years. a. what is this project's payback period?
Answers
Payback Period = ( Last Year with a Negative Cash Flow ) + [( Absolute Value of negative Cash Flow in that year)/ Total Cash Flow in the following year)]
= 4+ ( 40 / 590)
= 4.068 Years
The project's payback period is 4.068 Years.
The payback duration is defined as the range of years required to recover the precise cash funding. In distinct phrases, it's miles the time period on the prevention of which a gadget, facility, or different funding has produced sufficient internet sales to recover its funding costs.
The Payback period suggests how long it takes for a business enterprise to recoup funding. This kind of assessment allows firms to evaluate opportunity investment opportunities and determine a challenge that returns its funding within the shortest time if that criteria is vital to them.
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Quentin manages a personal care company that focuses on shampoo, conditioner, and body wash. One of his roles is structuring the company's resources and activities to accomplish its objectives efficiently and effectively. What management function does this example pertain to?
Answers
The management function that structures the resources and activities to accomplish its objectives efficiently and effectively is known as Organizing.
What is Organizing in management?An Organizing function means a management function that assembles people, organizes resources and distributes the planned work necessary to carry out the managers plan.
In conclusion, the organizing function is very important because its ensures an effective role-job-fit for every employee in the organization.
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Should a business email contain a salutation?
Answers
Answer:
A business email is meant in a professional way. It can be sought out as multiple different approaches, one of them, in this case, can include a friendly and welcoming business approach, including a salutation. All in all, it is up to the writer, there is no fully correct answer. Hope this helps :)
The end goal of budgeting is to plan and ____ organizational finances successfully?
A. justify
B. control
C.explain
D.increase
Answers
Answer:
B
Explanation:
Controlling is another organizational goal
9. Overall, what do you think is the best part about being a leader or manager?
Answers
As an AI language model, I do not have personal opinions or beliefs, but I can give you general information about the question. The best part of being a leader or manager is having the opportunity to impact and influence others positively.
A leader is responsible for setting the direction, goals, and strategies for the team or organization and then guiding and motivating their team to achieve those goals. They are also responsible for managing their team's performance and ensuring that their team members have the resources they need to succeed.
A manager is a professional who is responsible for overseeing and coordinating the work of others in an organization. Managers are responsible for planning, organizing, staffing, leading, and controlling their team or department's activities to achieve their goals and objectives. They are responsible for managing the resources, including personnel, equipment, and budgets, to ensure that their team is successful.
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what is the full meaning of "SWOT"
Answers
Answer:
Strengths, Weaknesses, Opportunities, and Threats analysis
Explanation:
Strengths, Weaknesses, Opportunities, and Threats analysis
Which group is legally responsible for implementing
protection and controls that ensure your workplace
meets safety standards?
A. Employers
B. Unions
C. Employees
D. Government
Answers
Answer:
A
Explanation:
Answer:
It SHOULD be employers but i may be wrong... if i'm not CAN I PLES HAVE BRAINLYIEST
Explanation:
Also, if i'm right there is no need to thank me unless you want too
Which form of ownership is used when someone wants to expand and invites a friend to make a joint business venture and they will share profits according to agreement and decide responsibility and take part in decision making and use their skills and expertise the business
Answers
The form of ownership used when someone wants to expand their business by inviting a friend to make a joint business venture is a partnership.
Partnerships can be either general or limited. In a general partnership, all partners share equal responsibility and decision-making power, and they are all liable for the debts and obligations of the business. In a limited partnership, there are two types of partners: general partners and limited partners.
General partners have unlimited liability for the business, while limited partners have limited liability and do not participate in the day-to-day management of the business.
In the scenario you provided, the friends would likely form a general partnership where they share the responsibility for managing the business and making decisions together. They would also share the profits and losses of the business according to their agreed-upon terms. Each partner would bring their unique skills and expertise to the venture, and they would work together to grow the business.
Overall, a partnership is an excellent form of ownership for friends who want to expand their business together because it allows them to combine their skills and resources while sharing the risks and rewards of the business.
However, it is important to have a clear partnership agreement in place that outlines the roles, responsibilities, and expectations of each partner to avoid any misunderstandings or disputes down the line.
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Which of the following statements best defines
UTILITY?
A. What you can obtain for an item at a later time
B. How well something satisfies a person's wants or
needs
C. What we lose by giving up the other provided choice
D. How helpful an item is given the context of a current
situation
Answers
Answer: c
Explanation: i just took the test
UTILITY is What we lose by giving up the other provided choice Option(c) is correct. In any case, it isolates the hypothesis of financial utility from real perception and experience, since "utils" can't really be noticed.
What is a Utility?Utility is a term in financial matters that alludes to the all out fulfillment or advantage from consuming a decent or administration.
Monetary hypotheses in light of judicious decision for the most part expect that shoppers will endeavor to augment their utility. The monetary utility of a decent or administration is vital to comprehend, on the grounds that it straightforwardly impacts the interest, and consequently cost, of that great or administration.
Practically speaking, a purchaser's utility is typically difficult to gauge or evaluate. In any case, a few financial specialists accept that they can by implication gauge what is the utility of a monetary decent or administration by utilizing different models.
Utilities are organizations that work in the electric, water, oil, or gas areas. These organizations assume a significant part in modern economies and have an all out market capitalization of almost $1.6 trillion.
Therefore Option(c) is correct.
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Connors company paid $700 cash to make a repair on equipment it sold under a one-year warranty in the prior year. The entry to record the payment will debit:.
Answers
The Journal entry to record the payment will include a debit to Accrued Warranty Payable for $700 and a credit Cash for $700.
What is a Warranty account?This account is used by firm to allocate expenses for replacing or repairing damaged products for customers.
Hence, for Connors company, the Journal entry to record the payment will include a debit to Accrued Warranty Payable for $700 and a credit Cash for $700.
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Membership in the Future Business Leaders of America (FBLA) has nearly limitless benefits, including scholarships.
True
False
Answers
Answer:
True.
Explanation:
I think this will be the answer.
in times of rising prices, cost of goods sold determined using the lifo inventory assumption typically will be than cost of goods sold determined using the fifo inventory assumption.
Answers
When prices are rising, the Cost of Goods Sold according to LIFO will be higher than cost of goods sold under FIFO.
Last-In, First-Out (LIFO) refers to a company selling off the latest inventory that it receives first before the inventory it received earlier.
When prices are rising, LIFO will result in a higher COGS because:
Purchases will be high Closing stock will be low on account of only the earlier cheaper inventory being leftIn conclusion, LIFO results in cost of goods sold being higher because the closing stock which is deducted from COGS will be lower.
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Select the type of job best demonstrated in each example. Frank is an Actor. His pay varies depending on how many hours he works each week. Susan works forty hours per week as a Reporter. Todd is a Telecommunications Equipment Repairer who works twenty hours per week. Latoya has a retirement account through the movie studio that employs her as a Film Editor.
Answers
Answer:here’s the answer for this question
Explanation:edge2023
The kind of the job demonstrated in each example are as follows:-
full time jobsalaried jobentry-level jobjob with benefitsWhat is an actor's job?Actors express ideas and portray characters in theater, film, television, and other performing arts media. They interpret a writer's script to entertain or inform an audience.
A full-time employment usually has a predetermined work week, with eight-hour days and forty-hour weeks. Working fewer than 35 hours a week is considered part-time. However, there are no hard and fast laws about the amount of hours.
Entry-level positions are available to everyone and do not require considerable professional experience or a degree.
Therefore, Employee benefits are any perks or remuneration given to employees in addition to their regular salary and earnings.
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Arantxa corporation has outstanding 20,000 shares of $5 par value common stock. on august 1, 2014, arantxa reacquired 200 shares at $80 per share.
Answers
The journal entries to record these transactions of Arantxa corporation using the cost method are given below.
How do you define journal entries?The journal entry can encompass numerous recordings, every of that's both a debit or a credit. The act of maintaining or making statistics of any transactions both financial or non-financial is referred to as journal entries.
The missing information in the question can be given below:
On November 1, Arantxa reissued the 200 shares at $70 per share. Arantxa had no previous treasury stock transactions. Prepare Arantxa's journal entries to record these transactions using the cost method.
As per the given information,
The journal entries for the given information are as follows:
Treasury A/c Dr. $16,000
To Cash $16,000
Cash $14000
Retained Earnings $2,000
To Treasury stock $16,000
Hence, the journal entries recording the given transaction relating to treasury stock are explained above.
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The journal entry for the shares reacquisition on August 1, 2014, of Arantxa Corporation is as follows:
Journal Entry:August 1, 2014:
Debit Treasury Stock $1,000
Debit Additional Paid-in Capital - Common Stock $15,000
Credit Cash $16,000
To record the re-acquisition of shares at $80 per share.Transaction Analysis:August 1, 2014:
Treasury Stock $1,000 Additional Paid-in Capital - Common Stock $15,000 Cash $16,000 ($80 x 200)
Question Completion:Show the journal entries for the given information above.
Thus, the journal entry above shows that the shares were reacquired at a premium of $75 ($80 - $5) per share.
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What type of investor will be most attracted to industries in the mature growth stage?
Answers
Investors attracted to industries in the mature growth stage are typically those seeking stability, steady returns, and reduced risk compared to earlier-stage industries.
Income-Oriented Investors: These investors prioritize regular income generation through dividends and interest payments. Industries in the mature growth stage often have well-established companies with stable cash flows, making them attractive for income-oriented investors who seek consistent and reliable returns.
Value Investors: Value investors look for undervalued assets and companies that are trading below their intrinsic value. In mature growth stage industries, there may be established companies with strong fundamentals that the market has undervalued, presenting opportunities for value investors to capitalize on.
Conservative Investors: Conservative investors prefer lower-risk investments with a focus on capital preservation. Mature growth stage industries tend to have less volatility compared to early-stage industries, making them appealing to conservative investors who prioritize stability and are more risk-averse.
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When managing in a unionized environment, managers need to remember two words. Bilateral and.
Answers
When someone manages in a unionized environment, they need to always remember the words including Bilateral and Proactive.
In a unionized work-environment, the employers must be enter an individual contracts with the employees since union is the bargaining agent for them.
In a unionized work-environment, the employees who are members of a union enjoys greater job security than the nonunion workers.Hence, when someone manages in a unionized environment, they need to always remember the words including Bilateral and Proactive.
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Why do the media sensationalize issues?
A.
to generate interest in a story, attracting readers or viewers
B.
to ensure that both sides of a story are explored
C.
to remove bias from a story
D.
to make sure that only the most important issues get news coverage
Please select the best answer from the choices provided
A
B
C
D
Answers
Answer:
A. to generate interest in a story to attract viewers and readers
The is charted to collect income tax and impose penalties for those who do not pay what they owe the government
Answers
The government has the responsibility to collect income tax from its citizens and impose penalties on those who do not pay their taxes on time.
This system of tax collection is charted to ensure that the government has a steady source of revenue to fund various public programs and services. Failure to pay taxes can result in a range of penalties, including interest charges, fines, and even legal action. These penalties are designed to encourage compliance with the tax code and discourage tax evasion. The government uses various tools to track and monitor tax payments, such as audits, tax assessments, and tax collection agencies. By ensuring that all citizens pay their fair share of taxes, the government can provide essential services to the public, such as healthcare, education, and infrastructure development. The tax system is an integral part of a functioning democracy and is essential for maintaining a just and equitable society.
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an analysis of items frequently co-occurring in transactions is known as _____.
Answers
An analysis of items frequently co-occurring in transactions is known as "association analysis" or "market basket analysis."
This technique is commonly used in data mining and retail analytics to discover patterns of items that are often purchased together. By examining transactional data, such as customer receipts or online shopping carts, association analysis identifies relationships and correlations between different items.
The analysis helps businesses understand customer behavior, optimize product placement, recommend related items, and support various decision-making processes, such as inventory management, cross-selling, and targeted marketing strategies.
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Which change should be made to the above cover letter excerpt before sending it to an employer? a. The author should to remove "Dear", because it is an informal letter b. The author should remove the background color from the letter c. The author should reduce the number of keywords being used d. The author should increase the number of characters to 100 on each line Please select the best answer from the choices provided A B C D.
Answers
The change that should be made to the above cover letter excerpt before sending it to an employer is option A: The author should remove "Dear" because it is an informal letter.
In a formal cover letter, it is customary to address the recipient using a salutation such as "Dear [Name]" or "To Whom It May Concern." By removing "Dear," the author would eliminate the informal tone and adhere to the appropriate level of professionalism required for a cover letter. Maintaining a formal tone is essential to make a positive impression on potential employers and show that you take the application seriously. It is important to follow the conventional norms and guidelines when writing a cover letter to enhance your chances of success.
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Bruce borrowed $1,000 for his trip. If bruce waits for five years to begin paying back his loan, how much will he owe?.
Answers
Answer:
$1,610.51
Explanation:
The complete question is
Bruce takes out a personal loan of $1,000 to go on a trip to Florida. His loan has an annual compound interest rate of 10%. The loan compounds once each year. When you calculate Bruce's debt, be sure to use the formula for annual compound interest.
Bruce borrowed $1,000 for his trip.
If Bruce waits for five years to begin paying back his loan, how much will he owe?
we know that
The compound interest formula is equal to
where
A is the Final amount owed
P is the amount of money borrowed
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
substitute in the formula above
Answer:
Explanation:
1,500 trust me took the test.
I need help asapppppp!
Answers
During january 2016, wells corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the remaining balance.
Answers
The proper statement is that as of the date specified in the journal entries for the acquisition of the inventory, the inventory will be debited and the cash and payables accounts will be credited.
What are journal entries?Journal entries are the financial transactions of a firm that are recorded in the organization's books in the order that they first appear.
Please refer to the graphic below, which includes the journal entries and their consequences as well as a description of the transaction and the event as well as the necessary amounts.
There will be a $200,000 debit in the inventories account, a $500,000 credit in the cash accounts, and a $150,000 credit in the accounts for bills payable in Wells Corp.'s books.
Therefore, the proper statement is that as of the date specified in the journal entries for the acquisition of the inventory, the inventory will be debited and the cash and payables accounts will be credited.
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Complete question:
In January 2016, Wells Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the remaining balance. This transaction will be recorded as:
