Discuss how you would proceed in making such decision

Assignment Help Financial Management
Reference no: EM132014818

1) You took out a 20 year mortgage of $350,000, 3 years ago where you pay $2,450.00 per month. You want to decide on whether you should pay the mortgage off early. What are the factors you should consider in making this decision if your household income is $6,000, and your monthly expenses of $2, 500. Your family includes 3 children who are 12, 10 and 8 years old. Discuss how you would proceed in making such a decision. State all assumptions.

2) Your 60 year old mother is in reasonable good health and has just received her retirement funds of $140,000 from her employer of 40 years. As a financial management student, she trusts you to create an investment portfolio which will be suitable for her. Her tolerance for risk is low. Provide justification for your options.

Reference no: EM132014818

Questions Cloud

Primary purpose of the analytic sandbox system : What does a typical analytical architecture consist of and its primary purpose of the analytic sandbox system?
Natural gas futures that trade on the cmegroup exchange : You recently looked into PJM Western Hub futures contracts and natural gas futures that trade on the CMEGroup exchange.
Describe any questionnaire results that may have surprised : Examine how your responses indicate your personal leadership philosophy. Describe any questionnaire results that may have surprised you.
When would scope creep or gold plating be acceptable : When would scope creep or gold plating be acceptable for a project? (1 Page) The response must be typed, single spaced, must be in times new roman font.
Discuss how you would proceed in making such decision : Your family includes 3 children who are 12, 10 and 8 years old. Discuss how you would proceed in making such a decision. State all assumptions.
By which they are expected to use computers at work : What are some common assumptions people may have regarding the rules by which they are expected to use computers at work?
Research for the latest developments in health care : Research the Internet for the latest developments in health care regulation, compliance, and law. See what has changed since early in this course!
Discuss the types of data repositories : Big Data Analytics, discuss the Types of Data Repositories that are connected to Predictive Analytics and explain the key predictive analyst roles
Describe the activities that your project team will perform : Describe the activities that you and your project team will perform in the initiating, planning, executing, controlling and monitoring, and closing processes.

Reviews

Write a Review

Financial Management Questions & Answers

  What will the value of first payment be at end of five year

Assume that you just received an ordinary annuity with 5 annual payments of $1,000 each. You plan to invest the payments at a 6% annual interest rate. What will the value of the first payment be at the end of the 5th year?

  Value bond has an annual coupon

A 25 year, $1,000 par value bond has an annual coupon of 8.5%. The bond currently sells for $875.

  European put option on a non-dividend-paying stock

Consider a 3-month European put option on a non-dividend-paying stock,

  Depreciation on the income statement of andrews

Last year Aft charged $2,080,000 Depreciation on the Income Statement of Andrews.

  The money supply would likely increase

Discuss the validity/invalidity of the following statements. If reserve requirements were set equal to 100 percent, there would be no moral hazard problem in the banking industry. If the reserve requirements on all deposits were set equal to 0, then ..

  Forward rate for one euro in terms of us dollars

On January 2d, 2014, Microsoft expects to ship 1,000,000 new X-Boxes from its US plant, which it will sell through EU dealers on 270-day terms at 250 Euro each. So Microsoft will receive payment from its dealers on September 28th, 2014.

  What is the relevant refunding investment outlay

New Jersey Waster Co. (NJWC) is considering whether to refund a $50 million, 14 percent coupon, 30-year bond issue that was sold 5 years ago. It is amortizing $3 million of flotation costs on the 14 percent bonds over the 30-year life of that issue. ..

  Balance of payments using double-entry accounting system

Show how the following transactions should be recorded in the U.S. balance of payments using a double-entry accounting system:

  Coincide with the interests of the managers of firm

When the interests of the owners of a firm do not coincide with the interests of the managers of the firm, the literature of business calls this ______

  Comparing two different capital structures

Sanborn Corp. is comparing two different capital structures. Plan I would result in 9,000 shares of stock and $80,000 in debt. Plan II would result in 7,500 shares of stock and $120,000 in debt. The interest rate on the debt is 8 percent.

  Explain what if the u.s. dollar weakens

What additional risks will the company face as a result of the proposed international sales? b. What happens to the company's profits if the U.S. dollar strengthens? What if the U.S. dollar weakens?

  Compute the payback period and net present value

Compute the Payback Period, Net Present Value and Internal Rate of Return.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd