Narrative 14-2 For Problems in This Section, Use Table 14-1 from Your

question 19

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. Harold Stiles earns a gross income of $2,960 per month. He has made application for a mortgage with a monthly PITI of $596.20. Harold has other financial obligations totaling $219 per month. (Use the ratio guidelines from your text)
A)What is Harold's housing expense ratio? (Round to the nearest tenth of a percent)
B)What is Harold's total obligations ratio? (Round to the nearest tenth of a percent)

• A)What is Harold's housing expense ratio? (Round to the nearest tenth of a percent)
• B)What is Harold's total obligations ratio? (Round to the nearest tenth of a percent)

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Definitions:

Net Income

A company's total earnings or profit, calculated as revenue minus expenses, taxes, and costs.

FOB Destination

A shipping term indicating that the seller is responsible for the goods until they are delivered to the buyer's specified location, whereupon title and risk of loss pass to the buyer.

Revenue Recognition

The accounting principle dictating the specific conditions under which revenue is recognized or recorded.