Short-term and long-term liabilities, Operation Management

Assignment Help:

In addition to the car lease, Leonard and Rose each have a VISA card with an interest rate of 18.25% p.a. They currently have a balance of $1,205 and made payments of $3,537 in 2010. You suggest that they pay this off as soon as possible in order to avoid the high interest charges. Although Leonard and Rose could take out a bank loan to save interest, they are nervous that, with a zero balance on their credit card, they might run it up again. You advise them that, in this case, they should  just keep plugging away and pay off the balance as fast as possible. Rose and Leonard think they could reasonably pay it all off in 2011. They will then have this money to contribute to either non-registered savings or RESPs for their children.

Rose and Leonard bought their house at the end of March 2002, making their first bi-weekly mortgage payment in April, 2002 (making 20 payments the first year). The house cost $280,000 and they put 25% down. The interest rate has always been 6.5%. They renewed for a 5-year term  in March 2007. The mortgage has been amortized over 25 years and they make end-of-period mortgage payments. The couple expects to pay off their mortgage in full before they retire. They have joint creditor life insurance on their mortgage, which is $525 p.a.


Related Discussions:- Short-term and long-term liabilities

Explain the clients role in the generating ideas stage, Which best describe...

Which best describes the client's role in the Generating Ideas stage of CPS? a. listens carefully to the ideas generated by the resource group. b. tells the resource group immediat

Feedback - advantages of statistical process control, Feedback - Advantages...

Feedback - Advantages of Statistical Process Control  SPC is a clear example of negative-feedback system control, providing management with timely information on the state of

Articulate a strategy for disseminating product information, The Swiss phar...

The Swiss pharmaceutical global corporation Hoffman-La Roche has made a major breakthrough in the relief of a serious disabling disease that affects 3 percent of the world's popula

Process layout - process design, Process Layout - Process Design This ...

Process Layout - Process Design This form of layout is used when there is no dominant flow pattern, and is particularly appropriate for job shop and small-batch operations. Th

Toyota Producttion assignment., Exercise 2: Use of a Grid Analysis (Weighte...

Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330 This exercise illustrates how when deciding am

Define how you would decide the number of seats, During busy periods, a new...

During busy periods, a new customer walks into LHS every 15 mins. (with a standard deviation of 15 mins). At SHC, a customer walks in every hour (with a standard deviation of 1 hou

Service profit chain - operation strategy, Service Profit Chain - Operation...

Service Profit Chain - Operation Strategy Prior to their work on the service-profit chain, Heskett and colleagues produced what they considered as the linkages between the emp

Discuss the relationship between companies and profit motive, Discuss the r...

Discuss the relationship between these four features of capitalism. Companies, profit motive, competition and private property.

Explain what makes one campaign better than the other, Suppose that a small...

Suppose that a small publisher selling to book distributors has fixed operating costs of $600,000 each year and variable costs of $3.00 per book. How many books must the firm sell

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