Narrative 14-2
for Problems in This Section, Use Table 14-1

question 71

Short Answer

Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. Daniel earns a gross income of $3,590 per month and applies for a mortgage with a monthly PITI of $765.63. David has other financial obligations totaling $363.17 per month. If the lending ratio guidelines are as given in the table below, what type of mortgage, if any, would Daniel qualify for? $$\begin{array} { | l | l | l | } \hline \text { Mortgage Type } & \text { Housing Expense Ratio } & \text { Total Obligations Ratio } \\\hline \text { FHA } & 29 \% & 41 \% \\\hline \text { Conventional } & 28 \% & 36 \% \\\hline\end{array}$$

Comprehend the importance of distribution considerations in the context of message effectiveness.

Understand the implications of file format choices on document security and audience convenience.

Understand the significance of using urgency markers appropriately in electronic communication.

Recognize the importance of privacy and security in the distribution of electronic communications.

---

Definitions:

Fixed Selling

Expenses that remain constant regardless of the level of sales or production, such as salaries of sales managers and rental charges of retail spaces.

Eliminating Product

The process of removing a product from a company's offerings, often due to low sales, obsolescence, or strategic repositioning.

Segment Margin

A segment’s contribution margin less its traceable fixed costs. It represents the margin available after a segment has covered all of its own traceable costs.

Special Equipment

Custom or unique machinery, tools, or apparatus required for specific tasks or production processes not typically found in generic manufacturing settings.