You have money earmarked for a downpayment on a house, andyou have entered into a purchase contract the specifies asettlement date in 60 days. For safekeeping, you consider puttingyour money needed for closing in[Select][Select]a high beta mutual fund that returned 20% last yeara high yield bond fund yielding 12%a money market mutual fund vielding 0.25%Show Transcribed Texth

In investment there is risk and return also both are involved but there should be optimal…

Answered: You have money earmarked for a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Potters want to buy a small cottage costing $120,000 with annual insurance and taxes of $740 and $2200, respectively. They have saved $15,000 for a down payment, and they can get a 6%, 25-year mortgage from a bank. They are qualified for a home loan as long as the total monthly payment does not exceed $1000. Are they qualified? Click the icon to view the Real Estate Amortization Table Select the correct choice below and fill in the answer box to complete your choice. (Round to the nearest cent as needed.) OA. No, because the total monthly payment is $ OB. Yes, because the total monthly payment is $ Submit test 0 ma on mo CHE Op ADD Ques
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Please answer this question. Prepare a journal entry for purchasing a AFS security for $150000.
A couple visits an open house and fall in love with the floor plan and location. They tell the host they would love to buy the house but do not know if they can afford it. In the conversation, the broker learns that they are currently paying $1750 per month for rent. Would the principal and interest payments be within the amount of their current rent if the price is $249,000 with interest rates for a zero down, 30 years mortgage at 5% interest? Note: 30 years of 5% interest is $5.37. A. Only if they have a 20% down payment. B. No, the payment is more than their current rent amount C. There is not enough information to determine an answer D. Yes, the payment is within the range of their current rent amount.
You have a prospective lessee for your office property and have the following options (assume a 7-year window and 2% discount rate). Which one will provide you with the highest effective rent? a. Option A: Rent is $98 per rentable square foot with the lessor paying operating expenses up to $40, lessee responsible for remainder. Operating expenses are $39 in first year and increase by $3 each year b. Option B: Rent is $90 per rentable square foot and will increase by $3 each year. Operating expenses are $40 during the first year and will increase by $1 every year. c. Option C: Rent is $91 per rentable square foot per year and will increase by $2.50 each year. Operating expenses are $45 for the first year and will increase by $3 every year, with lessor covering up to $48.
A buyer has agreed to purchase a home for $50,500. The buyer will assume a first mortgage in the amount of $32.200, will deposit $2.200 as earnest money, will deposit $5,600 in cash at cosing, and wl give the sellet a purchase- money mortgage for the balance. What is the amount of the purchase-money mortgage? a)$24,400 b)$18,300 c)$16,100 d)$10,500
You work in a company. You are offered the choice of two payments streams. A. $250 paid now. B. $150 paid now, $50 paid three months from now, and $150 paid ten months from now. If you want both of them to be equal, What should the intrest rate be?
fill out the worksheet using the following information: Theoretical Housing Situation: Renting: Monthly Rent: $1,800 Renter’s Insurance: $200 per year Security Deposit: $2,000 After-tax Savings Rate: 5% Buying: Home Price: $250,000 Down Payment: $50,000 Loan Amount: $200,000 Loan Term: 25 years Interest Rate: 3.5% Property Taxes: 1.25% of the home price Homeowner’s Insurance: 0.4% of the home price Maintenance Costs: 1.5% of the home price Closing Costs: $5,000 After-tax Rate of Return: 4% Tax Rate: 25% Estimated Annual Appreciation: 2%
Please help me. Thankyou.
You have saved $50,000 to use as a down payment for some property and to build a home. The home is in a prime building location that has trees and a stream running through the property. The clearing of the land and the building of the house will cost a total $650,000. a) How much money will you need to borrow through a mortgage for your home? b) The bank offers to finance your purchase with a 25-year amortized mortgage with a 5-year term at 4.125%. If you want to make monthly payments on this loan (end of each month), how much will each payment be? c) Prepare an amortization schedule for your first 3 mortgage payments d) At the end of the 5-year term, the mortgage terms allow you pay down an additional 10% of the original mortgage amount and the terms allow you to change the remaining amortization period. You have saved the additional money to pay down the amount of the loan (additional 10% of the original mortgage amount) and you want to shorten the remaining amortization by 5 years.…

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You have money earmarked for a downpayment on a house, and you have entered into a purchase contract the specifies a settlement date in 60 days. For safekeeping, you consider putting your money needed for closing in