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 multiplying the cumulative error by mad, 1. as the amount of on han...

1. as the amount of on hand inventory increases, A. shortage cost increase and carrying costs increase B. Shortage cost decrease and carrying costs increase C. both shorta

Evaluation of the process design, Evaluation of the Process Design On...

Evaluation of the Process Design One of the objectives in designing the process flow is to ensure that goods and services are produced at minimum cost. A major problem confro

Normal distribution of frequency in the histogram, Normal Distribution of F...

Normal Distribution of Frequency in the Histogram The frequency distribution in the histogram was obtained from 200 measurements segregated into seven classes, each class havi

Explain principles for determining product mix, The senior management at Ca...

The senior management at Canine Kernels Company CKC is concerned with the existing capacity limitations so they want to accept the mix of orders that maximizes the company's profit

Business organisation functions, ''OPERATIONS MANAGEMENT IS THE CENTRAL TO ...

''OPERATIONS MANAGEMENT IS THE CENTRAL TO THE FUNCTIONING OF ALL BUSINESS ORGANISATIONS''.with reference to the organisation of your choice discuss this statement highlighting how

Explain the most important effect of card check recognition, The most impor...

The most important effect of card check recognition procedures on union representation elections would be to: A. Increase the likelihood of first contract settlement. B. Give

Explain collaboration solutions in the face of economic, Why are unions exp...

Why are unions exploring new collaboration solutions in the face of economic/work adversity?

Explain mission and vision statement, What is the difference between a miss...

What is the difference between a mission and vision statement. Discuss why mission statements are important in performance improvement and why a solid mission statement (describing

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