Calculate your monthly payments

Assignment Help Financial Accounting

Reference no: EM133433788

A-C	$90,000 joint annual salary with no kids and $50,000 in savings
D-G	$80,000 joint annual salary with two kids and $100,000 in savings
H-L	$120,000 joint annual salary with three kids and $75,000 in savings
M-Q	$60,000 joint annual salary with no kids and $90,000 in savings
R-S	$100,000 joint annual salary with four kids and $60,000 in savings
T-Z	$160,000 joint annual salary with two kids and $80,000 in savings

Use the life details above that are appropriate for your last name starting initial to answer the following questions.

a. Estimate your expected weekly budget that you would need for food and entertainment for your details above. You can use the Marginal Tax Rate Calculator (opens in new window) to estimate your annual income taxes.

b. Calculate your monthly payments for a $200,000 dollar house after you put up a 10% Down Payment if you were to choose a 15 year mortgage at a 4.5% annual interest rate or a 30 year mortgage at a 5.25% annual interest rate.

c. Calculate your monthly payments for a $500,000 dollar house after you put up a 10% Down Payment if you were to choose a 15 year mortgage at a 4.5% annual interest rate or a 30 year mortgage at a 5.25% annual interest rate.

d. For each of the four options in the previous two questions, determine the total amount of interest you would end up paying over the course of the mortgage.

e. Based on your personal budget and financial expectations, choose the best option for you from the four options outlined above. Defend why this choice would make the best sense for you in this situation using any of the previous information and your lifestyle/level of risk.

Reference no: EM133433788

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