Liana earns $92,000/year. She has the following debts. - A monthly mortgage payment on a house she
Question:
Liana earns $92,000/year. She has the following debts.
- A monthly mortgage payment on a house she paid $265,000 for. She made the down payment required to avoid PMI. Her mortgage terms: 30 years, fixed APR of 3.68%
- A $17,000 car loan, payable over 5 years at 1.25% APR.
- $26,500 in student loan debt, payable at 3.9% APR with extended repayment.
- Electricity: $112/month
- Natural Gas: $80/month
- Phone/Cable/Internet: $135/month
- Cell phone: $80/month
- Water/sewer: $180/quarter
- Homeowner's Insurance: $490/semiannually
- Garbage: $60/quarter
- Child Care: $775/month
- Car insurance: $440/semiannually
Calculate Liana's D/I ratio, correct to the nearest hundredth of a percent.
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan