Based on their incomes, how large of a PITI can they comfortably afford to pay?
Hector a Maria have been married for almost one year now and are thinking about buying a house. Maria is an executive for a large, multi-national corporation with offices around the world. She has been told by her company that she will be transferred to a new location every three years. Hector is a car salesman and he is willing to move to wherever Maria gets transferred. Together they make $8,000 in gross monthly income and pay 40% in taxes and withholdings every month. Between them they have monthly payment of $400 in student loans and $700 in car loans, and their credit cards payments average $450 per month. They currently lease a luxury condo for $1,400 per month. They travel to Cancun every Christmas. Since they both work a lot of hours, they eat out at restaurants for most meals. They currently have nothing in savings but Hector's grandparents have said they will give them a 20% down payment for the new home.
A) Based on the 28 percent rule, they can afford $2,240 per month.
B) Based on the 36 percent rule, they can afford $2,880 per month.
C) Based on the 28 percent rule, they can afford $1,344 per month.
D) Based on the 36 percent rule, they can afford $1,728 per month.
Answer: A
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Julie's Diamond Boutique is very concerned with its order policies related to one-carat diamond solitaires. Their current policy is to order 10 diamonds whenever their inventory reaches 6 diamonds (unless there is already an ordered delivery due)
Currently there are 8 diamonds on hand. Orders are placed at the end of the month and take one month to arrive (e.g., if an order is placed at the end of month 1, it will be available at the beginning of month 3). The following distribution of monthly sales has been developed using historical sales. If Julie's Diamond Boutique does not have a diamond on hand, it will result in a lost sale. Use the following random numbers to determine the number of lost sales of one-carat solitaires at the store over 12 months. Monthly sales Probability 3 .20 4 .30 5 .20 6 .20 7 .10 Random numbers for sales: 10, 24, 03, 32, 23, 59, 95, 34, 34, 51, 08, 48