Tammy Faye requires a 12% before-tax return on her real estate investments. If she invests $78,000 cash to buy a rental townhouse that has $120 per month in taxes, insurance, and maintenance, and if she can sell the property in 5 years for $88,000, how much monthly rent must she charge to reach her target rate of return? Type your numeric answer and submit
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- b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly income. After researching the market, he determines he can obtain a 30-year home loan for 6.95% annual interest per year, compounded monthly. His monthly property tax payment will be approximately $150. What is the maximum amount he can pay for a house if his disposable monthly income is $2000? A person wants to buy a home. He has been advised A worker borrow $3500 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. Compare how much money the worker will save or lose on the transaction. An instrument can be bought for $10,000 cash or for d) $2000 down and payments of $750 per year for 15 years. What is the annual interest rate for the time payments? (Hint: you can assume interest rate between 4 and 5 % )Susanna wants to purchase a house costing $203,346. She plans to put $49,498 toward a down payment and finance the rest at 3.2% payable monthly for 30 years. If she stays with this payment schedule for the entire 30 years, how much will she actually pay for the house including down payment and interest? *PLEASE GIVE BOLD AND CLEAR ANSWER, THANK YOU!*Meredith, who is single, would like to contribute $6,000 annually to her Roth IRA. Her AGI is $125,000. 1. What is the maximum amount that Meredith can contribute? Show your calculations using Microsoft Excel. 2. Assume that Meredith’s AGI is $100,000. She plans to put $6,000 each year into her Roth IRA, hoping to earn 6% annually. What future value will accumulate in her Roth at the end of 20 years? 3. In part (b), instead assume that Meredith puts the $6,000 into the Roth for 15 years at 6%. How much will accumulate at the end of this period?
- Ophria invested well and plans to retire now because she has $2,300,000 in hre tax-deferred IRA account. How long will she be able to withdraw $125,000 per year (beginning one year from now) if her investments earn at a rate of 4% per year? solve using factors and NPER functions.Your parents hope to sell their large home and net $380,000 and then retire to a nice Florida community that is valued at $150,000. After they sell the property, they plan to invest the $230,000 in equity and earn a 4 percent after-tax return. Approximately how much will this nest egg be worth in 5 years when they retire? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. Type your response SubmitKenneth is expected to receive an inheritance of about $250,000 from his grandmother's estate in a few months' time. He is eyeing to buy a 1-bedder condominium so that he can stay on his own. The price of the property is $1,000,000. He is offered a 30-year mortgage loan of $750,000 at an interest rate of 1.3%. (i) Using BGN mode for calculation, Compute the monthly instalment of the mortgage loan.
- When Should Michael Pay Housing Costs? On April 1 of next year, Michael is purchasing a $225,000 condominium and has accepted the Tenth National Bank’s offer of a ten-year $182,250 loan with an interest rate of 7%. He has a gross annual income of $100,000 and is concerned about how much his one-time up-front costs and recurring monthly costs will be. He’s received the following data and form, but he’s not certain when he is to pay each cost—at closing, monthly, or both. Your task is to help Michael by completing the form and classifying the costs. Hint: Remember that the purchase is expected to close on the first of April. This means the following: • Although a year’s worth of a cost, such as the condominium’s property taxes, may be owed by the home buyer, a portion of the total cost will be paid by the seller. • A portion of a cost, such as the homeowner’s insurance premium, may be deposited into an escrow account so that the accumulated funds will be available to pay the…Mary wants to buy a mountain cabin for her retirement. Mary recently came into an inheritance of $30,000. She estimates that the cabin she wants will cost $40,000 when she retires in 3 years. Click here to view the factor table. How much of her inheritance must she invest at an annual rate of 6% (compounded annually) to buy her cabin? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to O decimal places, e.g. 458,581.) Investment amountGarrett and Erin are borrowing $170,000 to purchase a new home. They have been approved for a 30-year loan with an interest rate of 5.75%. What will be their monthly payment?
- Tom and Kyra Courtney are considering buying a house and are researching the potential costs. Their adjusted gross income is $144,000. The monthly mortgage payment for the house they want would be $1,450. The annual property taxes would be $9,400, and the homeowner’s insurance premium would cost them $876 per year. What is the front end ratio and will they be able to qualify?An individual is considering contributing $4,000 per year to either a traditional or a Roth IRA. Payments would begin in one year. If she uses the traditional IRA, her contributions would be fully deductible. She is 40-years old and is in a 28 percent tax bracket. On either IRA she can earn 7 percent. When she retires at age 65, she believes she will be in a 15 percent tax bracket. She invests not only the $4,000 per year, but any tax savings due to the deductibility of her contributions in a taxable investment earning a pretax rate of 7 percent. She will withdraw all her money upon retirement and may owe taxes then, depending on the type of IRA chosen. What is the after-tax future value of the traditional IRA including the invested tax deductions? Group of answer choices $237,545.47 $268,796.81 $215,046.73 $245,384.26 $252,996.15Your parents buy a new house to downsize. They pay $250,000 and are planning on paying it off in a 15 year loan with equal annual payments of $19,167. What interest rate do you evaluate them to be paying on the loan?