How much of a home can afford

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Question 1: You want to buy your dream home but you can only afford to pay $800 in monthly mortgage payments (assume end-of-month payments). The current mortgage interest rate is 3.5% for a 30-year conventional mortgage. How much of a home can you afford (before all the closing and settlement costs)?

Question 2: Which of the following could be a reason for the trend of Inventory Turnover ratio?

a. The company has been improving its sales performance

b. The company has been doing a poor job managing its supply chain

c. The company has been implementing a Just in Time (JIT) inventory management system across the whole system over the years

d. The company has consistently experienced out-of-stock situations as its sales picked up over the years

Reference no: EM132508953

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