explain the impact of the transactions on their Statement of Financial Position:

Deb and Rusty have just gotten married and wish to buy a home. They both work in Boston and have a combined income of $90,000. They found a modest starter house which they are buying for $350,000. 1. They plan to use their $40,000 is savings to cover the closing costs the bank will charge them, which are 1% of the amount they borrow from the bank. The rest of the savings will be used as a down payment. Determine the largest amount they can use for a down payment and still pay the closing costs. 2. Using the amount Deb and Rusty have to borrow from part 1, open Excel and create a 20-year amortization schedule, giving monthly payments for the amount they borrowed at a 4.5% annual interest rate. You must use the pmt function in Excel to compute the monthly payment. Title this worksheet Amortization. For your answer to this question write “See Excel Workbook”. 3. Use the amortization schedule to compute the total amount of interest they will pay to the bank over the 20 years. 4. Create a…

While jogging around his suburb one morning, Pedro sees a speedboat parked outside a house. There is a sign posted on the boat’s windshield saying: “For sale $9,000, Text Andres on 0409876543. Direct buyers only!” A boat lover, Pedro calls the number advertised and leaves a voice message saying that he’s happy to buy the boat for $7,000. He also leaves his return number. Andres is busy all day, and only hears Pedro’s message the next morning. He calls Pedro back; he also leaves a voice message saying that Pedro’s price is too low, but he can get the boat for $8,000. That same day, however, another buyer sees the boat and makes a $9,000 cash offer to Andres on the spot. Andres takes the money, signs over the boat’s registration papers, and the buyer tows the boat away. Pedro passes by Andres’ house and sees that boat is gone. Panicking, he listens to his voice messages and hears Andres’ message for the first time. He calls Andres right away and told him in no uncertain words that he…

Suppose a wealthy individual approaches you and says, “Because of your outstanding ability to manage money, I am prepared to present you with a tax-free gift of $1,000. If you prefer, however, I will postpone the presentation for a year, at which time I will guarantee that you will receive a tax-free gift of $X.” (For purposes of this example, assume that the guarantee is risk-free.) In other words, you can choose to receive $1,000 today or receive $X 1 year from today. Which would you choose if X equals (1) $1,000, (2) $1,050, (3) $1,100, (4) $1,500, (5) $2,000, (6) $5,000, (7) $10,000, (8) $100,000? Suppose the student is guaranteed to receive $1,100 one year from today, and nothing thereafter, if $1,000 is invested today in a particular venture. What is the return on the student’s investment?

Hello, I need help solving this accounting problem.

13. Moreon the time value of money The time value of money concept can be applied in various situations and is a fundamental concept underlying other financial concepts. Consider the following example of the application of this concept. Charles is a divorce attorney who practices law in New York City. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $550 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $5,000 and never have to pay annual membership dues. Obviously, the lifetime membership isn’t a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it’s a great deal. Suppose that the appropriate annual…

Geoff recently graduated from a state university with a degree in art history. He has no student loans and has saved $7,000 toward retirement while in school. He's heard rumors about the stock market being unstable right now, and he has friends his age who have seen their investment accounts go down in value. Geoff has decided to keep his money in a savings account until mutual fund returns look better; then he will invest the money. 1 2 3 4 Did Geoff make a good decision to keep his money in a savings account until the market goes back up? Why or why not? If he did put his money in the stock market instead of a savings account, should he leave it alone or take it out when the market goes down? Explain your answer. For long-term savings, what is the better option: Keep your money in a savings account or invest it into the stock market? Why? If Geoff came to you for advice about his money situation, what would you tell him?

The three brathers inherited the money from their late father.  The youngest and middle son decided to put their money in the bank,  The eldest son also considered the possibility of other ways of investing, such as in precious metals, securities or buying an investment apartment.  He considered these options in the context of the future economic situation (improvement, no change, deterioration, decline) and percentage returns from individual investment options.  He described the decision problem using the following table with estimates of the size of revenues.  Use the EMV criteria to determine the most appropriate way to invest your eldest son.     Preferences 0.052 0.2 0.056 0.692    Improvement    no change     deterioration    decline  precious metals 16.375 16 15.625 14.875 securities 10 10 8.25 0 investment apartment 6.75 1.75 1 1   Now write what is the best expected return (EMV)?

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Nick borrowed $6000 for 24 months from his bank using an 11 and a 1/2 percent discount note.  A.  How much interest did Nick pay the bank for the use of the money?  B. How much did he receive from the bank?