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

Describe the role of the federal reserve system, 1. Why is some knowledge o...

1. Why is some knowledge of accounting necessary to succeed in business? Provide examples. 2. Name some of the major stock exchanges where securities are traded. Describe the ch

Proposed solutions to combat conflicts of interest, Three major solutions h...

Three major solutions have been proposed to combat the medical industry conflicts of interest detailed above in this paper. The first solution is embodied in the Physician Payments

Explain quantitative risk so important in risk mitigation, Why is quantitat...

Why is quantitative risk so important in risk mitigation? Explain how you have seen this in action in life or in your organization.

Explain primary causes of information management, Analyze the primary cause...

Analyze the primary causes of information management / information technology project failures and recommend at least three (3) best practices that could be adopted by any organiza

Define how this influence of culture can effect organization, The Japanese ...

The Japanese firm Matsushita has a business philosophy from the strong founder Konosuke. This business philosophy was codified as the "Seven Spiritual Values" of Matsushita that al

Explain activity would be reduced, You will find that some resources are la...

You will find that some resources are labor-based while others are not. For example, let's say you had one person initially scheduled for a job and it was going to take ten days. L

Explain theory x, Explain Theory 'X'. These theory is place forward by ...

Explain Theory 'X'. These theory is place forward by Douglas McGregor. It is based upon the management thinking containing certain assumptions about human nature and human beha

Explain how the employees effectively execute strategy, Select a company th...

Select a company that you believe uses employees to achieve a competitive advantage. Discuss how the employees effectively execute the strategy and how the company can sustain this

Operations function in an organisation - method study, Operations Function ...

Operations Function in an Organisation - Method Study  A procedure that has stood the test of time in the study of work entails six steps (often referred to by the acronym, SR

Explain the implications from an operations design, Question: Large ret...

Question: Large retailers, in general, tend to move from a business model characterised by a fragmented network of many small-to-medium scale retail operations located in city

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