Jessica is single and owns her own home. She makes $120,000 per year from her job and has no other income. She has a $300,000.00 mortgage on her home with monthly payments of $1,320, annual taxes of $3,600, heating costs of $100 per month, electricity costs of $150 per month, internet costs of $80 per month and annual home insurance of $600.00. Jessica pays $450.00 per month to lease her car and has one credit card with a limit of $10,000.00 and a current balance of $500.00. Calculate Jessica’s Gross Debt Service Ratio. A. 17.7% B. 20.0% C. 17.2% D. 29.5%
Jessica is single and owns her own home. She makes $120,000 per year from her job and has no other income. She has a $300,000.00 mortgage on her home with monthly payments of $1,320, annual taxes of $3,600, heating costs of $100 per month, electricity costs of $150 per month, internet costs of $80 per month and annual home insurance of $600.00. Jessica pays $450.00 per month to lease her car and has one credit card with a limit of $10,000.00 and a current balance of $500.00. Calculate Jessica’s Gross Debt Service Ratio. A. 17.7% B. 20.0% C. 17.2% D. 29.5%
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 37P
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Jessica is single and owns her own home. She makes $120,000 per year from her job and has no other income. She has a $300,000.00 mortgage on her home with monthly payments of $1,320, annual taxes of $3,600, heating costs of $100 per month, electricity costs of $150 per month, internet costs of $80 per month and annual home insurance of $600.00. Jessica pays $450.00 per month to lease her car and has one credit card with a limit of $10,000.00 and a current balance of $500.00. Calculate Jessica’s Gross Debt Service Ratio.
A. 17.7%
B. 20.0%
C. 17.2%
D. 29.5%
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT