What is the highest price that you could afford to pay

Assignment Help Financial Accounting
Reference no: EM132929875

Question - Consider yourself to be in the position of being able to pay $1200 per month in mortgage repayments. You can get a 30-year loan, with an interest rate of 8.5% per annum compounded monthly, but you must pay 5% of the cost of the house as an initial payment. You would like to know if you can afford to buy a house in Coogee. Assuming that you have saved enough for the initial payment, what is the highest price that you could afford to pay for a house?

Reference no: EM132929875

Questions Cloud

Assessment of performance management : Discuss this statement, including the identification of some of the reasons for this assessment of performance management in the workplace in Australia and its
Calculate the net present value with a required return : Calculate the net present value with a required return of 8%, an initial investment of $45,000, and cash flows of $12,000; $20,000, $10,000, and $6,000
Prepare the journal entries to record pension expense : Prepare the journal entries to record pension expense and the company's funding of the pension plan in 2020, assuming Ivanhoe applied IFRS
What are feelings about the minimum wage : What are your feelings about the minimum wage? How should it be structured?
What is the highest price that you could afford to pay : Assuming that you have saved enough for the initial payment, what is the highest price that you could afford to pay for a house
Briefly explain the time value of money : Briefly explain the time value of money, its methods, and how it applies to NPV. Are you optimistic about your understanding of this week's assignments?
How much accounts receivable shall be presented : Twinkle Co. has accounts receivable from, and accounts payable to, Star, Inc. amounting to P200,000 and P180,000, How much accounts receivable be presented
Compare different methods of recruiting job candidates : 1. Describe the basic methods of collecting job analysis 2. Compare different methods of recruiting job candidates
What is assessment of the statement : What is your assessment of this statement? You have just returned to your job after completing your MBA, generously funded by the CEO

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the journal entry to record the redemption of bonds

Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100

  Discuss the pros and cons of ratio analysis

Discuss the pros and cons of these methods of financial statement analysis: ratio analysis, vertical analysis, and horizontal analysis

  Discuss three types of ledgers and its importance

Discuss three types of ledgers and its importance. What arguments should the accountant use to support the double entry system? Do you agree with the proprietor

  What is the net advantage of re-working the keyboard

What is the net advantage or disadvantage of re-working the keyboards? The Manassas Company has 55 obsolete keyboards that are carried in inventory

  What was depreciation and amortization expense

The company had $6.8 million in interest expense, and it's average corporate tax rate was 35 percent. What was its depreciation and amortization expense?

  Describe and explain the contrasts between the demographic

describe and explain the contrasts between the demographic characteristics of the core and periphery of the global system?

  Determine the amount of the annual payments

On December 31, 2004, International Refining Company purchased machinery having a cash selling price of $85,933.75. Determine the amount of the annual payments

  What is the estimated percentage of uncollectible accounts

Assuming both companies use the percent of receivables allowance method, what is the estimated percentage of uncollectible accounts for each company

  Record each of the transactions for donnie hilfiger

Record each of these transactions. As of the beginning of 2021, 380 shares of preferred stock and 4,800 shares of common stock have been issued

  Compute the total estimated bill

Estimate to repair a commercial fryer. The company estimates that it would take 20 hours of labor and $8,000 of parts. Compute the total estimated bill.

  Evaluate all materials and labor variances in a spreadsheet

Calculate all materials and labor variances in a spreadsheet by using a program like Excel. Be sure to include price, quantity, wage rate, and labor efficiency variances.

  Prepare a multiple-step income statement for year ended july

Prepare a multiple-step income statement for the year ended July 31, 2006, concluding with earnings per share. In computing earnings per share.

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