The President of the United States makes $400,000 annually. While still in office, the president's family has decided to purchase a home that has an estimated property tax of $50,000 and home insurance of $15,000 annually. Let's assume that the president's family has no loans or debt, and they have saved a 35,000 down payment. What monthly mortgage payment can the president's family afford?
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The President of the United States makes $400,000 annually. While still in office, the president's family has decided to purchase a home that has an estimated property tax of $50,000 and home insurance of $15,000 annually. Let's assume that the president's family has no loans or debt, and they have saved a 35,000 down payment.
What monthly mortgage payment can the president's family afford?
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- Suppose that your parents are willing to lend you $20,000 for part of the cost of your college education and living expenses. They want you to repay them the $20,000, without any interest, in a lump sum 15 years after you graduate, when they plan to retire and move. Meanwhile, you will be busy repaying federally guaranteed loans for the first 10 years after graduation. But you realize that you won’t be able to repay the lump sum without saving up. So you decide that you will put aside money in an interest-bearing account every month for the five years before the payment is due. You feel comfortable with putting aside $275 a month (the amount of the payment on your college loans, which will be paid off after 10 years). How high an annual nominal interest rate on savings do you need to accumulate the $20,000 in 60 months, if interest is compounded monthly? Enter into a spreadsheet the values d 5 275, r 5 0.05 (annual rate), and n 5 60, and the savings formula with r replaced by r/12 (the…You are making plans for your retirement. You have just turned 30 and want to retire on your 65th birthday. Once retired, you plan to move to a tax-free Caribbean state, where you believe you can live comfortably on $10,000 per month. Your first payment of $10,000 will occur one month after you retire, and you will receive your last instalment from your retirement fund on your 85th birthday when you intend to move back to Canada and depend on your kids for support. Your current salary is $60,000 per year, or $5,000 per month. Your personal tax rate is approximately 25%. You estimate that you can earn an average return of 10% APR compounded monthly on any money you invest over the next 60 years. You will make your first deposit one month from now and your last deposit on your 65th birthday. To ensure that you are able to achieve your retirement objective, what percentage of your after-tax monthly. income must you save? Select one: a. 4.52% of after tax monthly income b. 5.46% of after…Please answer only question B, because I sent already question A in a separate question on the site. Thanks! Mrs. R. would like to buy a mobile home. To this end, she takes out a loan of 80,000 euros on 01.01.2021. amount of 80,000 euros. The loan agreement stipulates an annual interest rate of 4.5%. a) Ms. R. agrees with the bank to repay the debt plus interest in nine equal amounts at the end of each year.at the end of each year. The first payment is to be made on 31.12.2022.1. how high is the annuity to be paid at the end of each year from 31.12.2022?2. indicate the repayment schedule line for the 7th year after the debt is taken on.3. instead of annuities, Mrs. R. is considering making quarterly payments of the same amount in advance in 2022, 2023, 2024, . . . , 2030 to be made. How high is the quarterly payment? B) Ms. R. agrees with the bank to repay the debt plus interest with annuities in the amount of 15,000 euros at the end of each year. The first payment is to be made on…
- “Suppose that your parents are willing to lend you $20,000 for part of the cost of your college education and living expenses. They want you to repay them the $20,000 without any interest, in a lump sum 15 years after you graduate, when they plan to retire and move. Meanwhile, you will be busy repaying federally guaranteed loans for the first 10 years after graduation. But you realize that you won’t be able to repay the lump sum without saving up. So you decide that you will put aside money in an interest-bearing account every month for the first five years before the payment is due. You feel comfortable with setting aside $275 a month (the amount of the payment on your college loans, which will be paid off after 10 years). How high an annual nominal rate on savings do you need to accumulate the $20,000, in 60 months, if interest is compounded monthly? Enter into a spreadsheet the values of d = 275, r = 0.05 (annual rate), and n = 60, and the savings formula with r replaced…2. Ms. Bayer comes to your bank, Bank of America (BOA), to ask for advice on a planned house purchase. Her annual salary is $60,000. BOA does not charge a fee (just assume this; it is not true in the real world) on housing loans, and it allows a custom's monthly mortgage payment to be equal to 30% of the customer's monthly salary (before-tax). For a 30-year fixed-rate loan with an interest rate of 12%, compounded monthly, answer the following two questions: (1) how much (the maximum amount) can BOA lend to Ms. Bayer? (2) To finance the purchase of a house, BOA requires that the home buyer come up with a 20% down payment. Assume Ms. Bayer can make the 20% down payment. Based on the maximum loan amount, what is the maximum price of a house Ms. Bayer can buy? 3. Refer to the previous problem, work out an amortization table (similar to that on Slide 4.55) for the 360 periods. Briefly discuss what you observe from the results. Turn in the Excel file. Name = HW 2 CH 4 Clinton Ford Obama.xls.a). Akua intends to save 1,000 a year for her retirement until she is 55 years old, at this age, she will stop paying into the account, though she will retire at 65. If the retirement account earns 10% interest per year, how much will Akua have saved at age 65? She is 35 years at the moment. b). Financial markets and its institutions are seen as the central nervous system of an economy and must be regulated at all times. Discuss the key roles played by financial markets, and outline two (2) reasons why they must be regulated. c). Explain the difference between money market and capital market and mention two (2) securities traded in each of these markets. d). MTN was able to raise only GH¢1.15billion out of the expected GH¢3.48billion from its Initial Public Offering which lasted from May 29, 2018 to July 31, 2018. Even though the share sale exceeded the minimum of GH¢348million or 10 percent of the total required for the offer to be declared successful, it still represented only 32.97…
- You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires - of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ 170,0 (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ 95 (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ 2,850 (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per year and the property insurance is $1,458 per year, what is the…You are a loan officer at the West Elm Savings and Loan. Mr. and Mrs. Brady are in your office to apply for a mortgage loan on a house they want to buy. The house has a market value of $170,000. Your bank requires 1 5 of the market value as a down payment. (a) What is the amount (in $) of the down payment? $ (b) What is the amount (in $) of the mortgage for which the Bradys are applying? $ (c) Your bank offers the Bradys a 30 year mortgage with a rate of 5%. At that rate, the monthly payments for principal and interest on the loan will be $5.37 for every $1,000 financed. What is the amount (in $) of the principal and interest portion of the Bradys' monthly payment? $ (d) What is the total amount (in $) of interest that will be paid over the life of the loan? $ (e) Your bank also requires that the monthly mortgage payments include property tax and homeowners insurance payments. If the property tax is $1,710 per year and the property insurance is…Hi Preceptor:) you ignored my question but this is specific question as you can see. First question has been solved. Please you may solve related question. Thank you from Turkey :) This is first question: 1) You decide to buy a small office building costing $150.000 and take out a fixed term loan over 5 years at 10%. The loan is to be paid in 5 equal instalments starting at the end of this year. Estimate the annual repayments and prepare a mortgage repayment table showing interest payments, reduction in capital, opening and closing balances. (Solved) Related other question: 2) Solve the first problem above with a change in interest rates from 10% to 5% after the second year. For the first two years interest rate is 10%. a) Construct a mortage repayment table with a change in interest rate from 10% to 5% for the last three years. b) When the interest rate dropped to 5%, is it possible to pay off the loan earlier than 5 years by keeping payments constant?
- Your 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?You bought a house exactly 16 years ago. You borrowed money under a 30 year mortgage from Wintrust to buy the house. Your monthly payment is $300. The loan has a fixed rate of 4% per year. I want to pay off the bank and be debt free. How much must you pay the bank to extinguish your loan? options: cannot provide answer as we do not know what the house purchase amount was! $57,600 $38,543 $50,400 $54,000 $26,987.12 $13,876.49Why Should not the government subsidize home buyers who make less than $120K per year. please explain this statement