User Account

All Pages

Find the amount of money

Assignment Help Finance Basics
Reference no: EM133275355

A young couple found an apartment that they want to buy. The 'asking price' of the apartment is $800,000. The bank has offered them a 30-year table loan repayable in 360 equal monthly instalments (at the end of each month) at a nominal interest rate of 4.8% per annum, compounded monthly.

(a) The couple can afford to pay $3,500 per month as mortgage payments. Under the terms of the loan offered by the bank, find the amount of money that the couple can borrow?

(b) The couple saved $160,000 for the deposit towards a purchase of a property. If the bank requires at least 20% of the value of the property as a deposit, can they afford to purchase this apartment for the 'asking price'?

Reference no: EM133275355

Questions Cloud

How a traditional art form/genre evolved : ARTS 4301 Texas A&M University, Kingsville How a traditional art form/genre evolved from earlier forms through advances in technology or changes in American
What is the price of the contemporary shares : Contemporary Casuals Ltd. has a beta of 1.15, an expected dividend of $2.30, and an expected dividend growth rate of 5 % for the foreseeable future. If the expe
Correlation between the annual returns on two portfolios : Greta has risk aversion of A = 3 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as wel
Examine how our nations laws affect the operations : PHI445 445 Ashford University examine how our nation's laws affect the operations of the business. You will need to research the applicable laws on the factory
Find the amount of money : A young couple found an apartment that they want to buy. The 'asking price' of the apartment is $800,000. The bank has offered them a 30-year table loan repayab
Would a truly virtuous person use recreational drugs : ETHICS 20 Harvard University Would a truly virtuous person use recreational drugs, drive over the posted speed limit, or engage in promiscuous or adulterous sex
What makes a human person, a human person : What makes a human person, a human person and Why should the body be viewed that even people are different, there's still essence (similarities)
What profit margin must the firm achieve : 1. Hazelmere Co. wishes to maintain a growth rate of 13% a year, a debt-equity ratio of 1.20, and a dividend payout ratio of 30%. The ratio of total assets to s
What is the company sustainable growth rate : What is the company' s sustainable growth rate? Suppose the firm targets a 30% sales growth rate next year, and the firm doesn't want to issue new equity, what

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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