Reference no: EM133046661
Question - You are planning to buy a new house. You currently have $35,000 and your bank told you that you would need 15% down payment plus an additional 4% in closing costs (Hint: Total loan amount is 85% of the home price. Closing cost is calculated as 4% of the total loan amount. Total amount needed at closing = Down payment + closing cost. It will be due at closing and will NOT be part of the mortgage). If the house that you want to buy costs $250,000 and you can make a 7% annual return on your investment, determine the following:
a) What is your total loan amount?
b) When (i.e., in how many months?) will you have enough money for the down payment and closing costs, assuming that the $35,000 is the only investment that you make? Use Monthly compounding.
c. You decide that you want to buy the house in 3 years. In addition to your $35,000, how much do you need to save every month to achieve your goal? Use monthly compounding.
d) Assume that three years later the house still has the same price and that you can get a 15-year mortgage from your bank at a fixed rate of 4.5%:
1. What are the monthly payments on the loan?
2. How much do you pay on interest and principal the 50th monthly payment?
|
Congressional and presidential positions on healthcare
: Describe and analyze the 2017 Congressional and Presidential positions on healthcare legislation where there is some consensus or there are trends that will dir
|
|
Organizational leveraging of social media
: As you know, social media have transformed the way we interact.78 The transparent, rapid-fire communication they make possible means people can spread informati
|
|
Prepare a cost-volume-profit graph for the company
: Assume variable costs are $6 per burrito and fixed operating costs are $120,000 per year. Prepare a cost-volume-profit graph for the company
|
|
Summarizes the power held by account executives
: 1) At a national accounting firm, account executives-essentially, the sales reps for the organization-appear to have tremendous power. Each one handles only a f
|
|
What is your total loan amount
: You currently have $35,000 and your bank told you that you would need 15% down payment plus an additional 4% in closing costs. What is your total loan amount
|
|
Future of sport facilities such as gil sportsplex
: What do you think is the future of sport facilities such as Gil's Sportsplex?
|
|
What are the important roles of the nation-state
: What are the important roles of the nation-state (such as the USA, India, China, Russia, Canada) in creating an environment for business? PLEASE ADD REFERENCES.
|
|
What dividends are received by the preference shareholders
: In 2009, $20,000 of dividends are declared and paid. What dividends are received by the preference and ordinary shareholders in 2009
|
|
Apple competitive advantage in the technology industry
: What is apple's competitive advantage in the technology industry?
|