My name is John Jones and I have twin daughters who are starting college next fall at Northwestern University in Chicago. The original plan was for the girls to live in the dorm. However, the amount the University charges for what they would get is unbelievably high. I just don’t want to pay rent for four years (or more). I’m considering buying a condominium close to Northwestern and having them live there instead of the dorm. I think it would be a good investment and clearly much better than paying rent. I have identified a condo selling for $300,000 that would be terrific. When the girls leave Chicago, I will probably sell the condo. I would need to borrow $240,000 to buy it, and what I want to know is whether I can deduct the interest expense on the loan.

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…

Laura and Tommy want to make sure their newborn can attend college. They have seen estimates that the four-year cost of in-state colleges will be $160,000 in 18 years. They ask their financial advisor (they obviously didn't take this course) how much they need to save in an annuity each year over that time if they invest at a fairly low-risk rate of six percent. What was the advisor's answer (rounded to the nearest dollar)? Hint: remember that discounting is the inverse of compounding. [submit your answer with a numerical value with a comma and no dollar signs]

Let’s learn more about Will and Stephanie and help them determine what the best insurance options are for them.Will recently decided that he wants to live off campus next school year. He’s going to start looking for apartments in the next week. In the meantime, he wants to consider whether he needs renter’s insurance or not. Here’s some information about Will: •Things he owns that he’ll have with him next year: oLaptop ($1,500) Stereo ($500) oRecreation equipment ($500) oFurniture ($250) oMiscellaneous ($250) •Coverage Optionso Policy 1 - $4,000 of coverage, $20 a month (10% discount if he prepays a full year) oPolicy 2 - $3,000 of coverage, $18 a month (No discount if he prepays a full year) oPolicy 3 - $2,000 of coverage, $15 a month (10% discount if he prepays a full year)   How much coverage should Will look for to protect all of his assets? A.$1,500 B.$2,000 C.$3,000 D.$4,000

Your parents have accumulated a $120,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $15,000 to help her get started, and they have decided to take year-end vacations costing $10,000 per year for the next four years. How much money will your parents have at the end of four years to help you with graduate school? You plan to work on a master’s and perhaps a PhD. If graduate school costs $26,353 per year, approximately how long will you be able to stay in school based on these funds? Use 9 percent as the appropriate interest rate throughout this problem. Round all values to whole numbers         Flag question: Question 6 Question 64.5 pts What are the funds available after the Nail Salon? Group of answer choices $100,000 $105,000 $72,000 $98,500       Flag question: Question 7 Question 74.5…

A young couple just had their first baby and is looking for additional income. They are considering renting out the space above their garage as an apartment. To convert the space, the couple will have to invest $30,000.00 today. It will take one year before they can begin renting the space. Let’s suppose that they can rent the apartment for $5,000.00 per year for ten years. (first payment will be in one year)). What is the IRR of this investment?

T recently returned from a trip to India. I was inspired to go by that film about the Marigold Hotel. I stayed there but I didn't find any of the adventures you see in the movie. I-was expecting late-blooming love but that didn't happen. But I am not one to give up, so I am planning to buy the hotel. The owner says I can buy it for a down payment of $100,000 and monthly payments of $25000 for five years. Money is 9% compounded quarterly. How much interest is she charging me? No decimal places.

Amanda Weet who is six years old has been gifted $100,000 (after-tax) towards a college fund. Her parents do not have the ability to add any other amounts to the fund and a good four-year college education will cost about $71,000 per-year in ten years from now. What rate of return should she earn to be able to withdraw $71,000 at the end of 10th, 11th, 12th, and 13th year respectively. (Hint: IRR problem, draw a time line)

James and Tanisha are saving for their daughter Nalah's college education. Nalah just turned 10 (at t = 0), and she will be entering college 8 years from now (at t = 8). College tuition and expenses at State U. are currently $16,000 a year, but they are expected to increase at a rate of 3.5% a year. Nalah should graduate in 4 years--if she takes longer or wants to go to graduate school, she will be on her own. Tuition and other costs will be due at the beginning of each school year (at t = 8, 9, 10, and 11). So far, James and Tanisha have accumulated $14,000 in their college savings account (at t = 0). Their long-run financial plan is to add an additional $6,000 in each of the next 4 years (at t = 1, 2, 3, and 4). Then they plan to make 3 equal annual contributions in each of the following years, t = 5, 6, and 7. They expect their investment account to earn 10%. How large must the annual payments at t = 5, 6, and 7 be to cover Nalah's anticipated college costs? O a. $3,501.99 O O b.…

Hi I have a question regarding Austrlian Retirement and Financial Planning. In this example, the couple are retired and one of them is ill and looking for a retirement home, the home is going to cost $450,000 deposit. Neither of the couple work and draw 50,000 from their super in order to stay afloat. They have 20,000 and 562,000 in super combined, have a 900,000 dollar home. They also have 10,000 worth of home contents, a 15,000 dollar vehicle, and 55,000 cash in the bank. It is important to note they have 0 debt and everything is fully paid off. Neither of them have ever received pension money or government support. Myrtle wishes to put bob in an aged care facility, and when that is done she wants to return to work part time. 1. How will Myrtle's income be funded of $40,000 per annum be financed now, in the future and when she retires in 10 years time?