How much james should repay monthly on mortgage

Assignment Help Financial Accounting

Reference no: EM132796450

James has recently bought a farm in a rural area at $500k. This farm was going to be operated by the other farmer, but he suddenly died due to the COVID-19. Therefore, James immediately contracted ASAP at a cheap price. (James does not need to pay until the farm is completely built which takes 1 year and a half years.) James has found that one bank offers to farmers 50% loan of the property that has to be paid in 20 years by chance. Eventually, James has decided to rent the farm by using the bank loan. He has currently got regular bonds and other incomes which can cover the principal and interest from the mortgage and also other land related costs during each year. James wants to take the farm without difficulties during fixing the farm. Therefore, he thinks he should save 10% deposit, and will require the extra fee of $5,000 for a tax accountant.

Problem 1: How much does he have to save every week to succeed the settlement on the farm for 1 year and a half years? As he decided to use the mortgage, he opened a brand new bank account which weekly pays at 0.7% p.a.

Problem 2: How much James should repay monthly on his mortgage after the farm finishes the construction? (after this James should start making payments.)

Reference no: EM132796450

Questions Cloud

What community resources would you share with the audience : You are a community nurse asked to provide an educational program on elder abuse at a senior center. What information. Would you consider providing and why?

What are three issues of strategic significance : What are three issues of strategic significance that AutoZone has encountered within the past 12 months?

Develop and implement workplace policies : Develop and implement workplace policies and procedures for sustainability on at least one occasion and implementing sustainability policy and procedures

How can expressing understanding : How can expressing understanding, asking questions and nonverbal communication be used for effective listening? Provide an example for each concept.

How much james should repay monthly on mortgage : How much James should repay monthly on his mortgage after the farm finishes the construction? (after this James should start making payments.)

What is the number of meals required to break-even : Variable Marketing Costs 10% of sales. What is the number of meals (unit sales volume) required to break-even

Identify the organization along with the topic : Identify the organization along with the topic/issue presented in the PSA or commercial.

What are some strengths of the proposal : Share your written proposal with your manager, supervisor or other colleague in a formal leadership position within a health care organization.

Major findings to dwight that you discovered : Create a executive summary that reports major findings to Dwight that you have discovered. What does EC want from its customer relationships?

User Account

All Pages