Assignment 2: Financial Project, Algebra

Assignment Help:
ue Week 7 and worth 55 points

Five (5) years ago, you bought a house for $171,000, with a down payment of $30,000, which meant you took out a loan for $141,000. Your interest rate was 5.75% fixed. You would like to pay more on your loan. You check your bank statement and find the following information:

Escrow payment


$261.13

Principle and Interest payment


$822.84

Total Payment


$1,083.97

Current Loan Balance


$130,794.68



Write a one to two (1-2) page paper in which you address the following:

Part 1

With your current loan, explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25. Decide whether or not it would be reasonable to do this if you currently meet your monthly expenses with less than $100 left over.

(a) Explain your strategy for solving the problem.
(b) Present a step-by-step solution of the problem.
(c) Clearly state your answer to Part 1. What is your decision?



Part 2

Identify the highest interest rate you could refinance at in order to pay the current balance off in 20 years and determine the interest rate, to the nearest quarter point, that would require a monthly total payment that is less than your current total payment. The interest rate that you qualify for will depend, in part, on your credit rating. Also, refinancing costs you $2,000 up front in closing costs.

(a) Explain your strategy for solving the problem.
(b) Present a step-by-step solution of the problem.
(c) Clearly state your answer to Part 2. What is your decision?



Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

Apply finance formulas and logarithms to amortize loans and calculate interest.

Use technology and information resources to research issues in algebra.

Write clearly and concisely about algebra using proper writing mechanics.

Related Discussions:- Assignment 2: Financial Project

Volume one, the perimeter of a triangle is 76 centimeters. the second side ...

the perimeter of a triangle is 76 centimeters. the second side is twice as long as the first side. the third side is four centimeters shorter then the second side. how long is each

Word problems, Five star coffee charges a 40 dollar start up fee and then 8...

Five star coffee charges a 40 dollar start up fee and then 8 dollars per month. Custom coffee company charges a 25 dollar start up fee and 12.50 dollars per month. In which time fr

Sketch the graph parabolas, Sketch the graph parabolas. f (x ) = 2 ( x +...

Sketch the graph parabolas. f (x ) = 2 ( x + 3) 2   - 8 Solution In all of these we will just go through the procedure given above to determine the required points and t

Word problems, can you help me solve this problem?

can you help me solve this problem?

Solve quadratic equation, Solve following equations by factoring. a) x 2...

Solve following equations by factoring. a) x 2 - x = 12 b) y 2 + 12 y + 36 = 0 Solution a)      x 2 - x = 12             First to solve it get everything on si

Slope and y-intercept, One of my homework questions ask to find the slope a...

One of my homework questions ask to find the slope and y-intercept of a table and I''ve tried quite a few methods and just can''t figure it out. PLEASE HELP!!

Square root property, The second method of solving quadratics is square roo...

The second method of solving quadratics is square root property,                                                  If p 2   = d          then       p =±d There is a (potential

Word problem, Can you help solve this word problem? christine collected som...

Can you help solve this word problem? christine collected some toys for charity. She donated 3/4 of the toys to charity A. then she donated 1/3 of the remaining toys to charity B.

Slope intercept, how do you do equations for sloe intercept?

how do you do equations for sloe intercept?

Write Your Message!

Captcha
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