Answer:
a. Julie should continue live in her own apartment.
b. She should then purchase the condo
c. Home maintenance cost and tax benefit.
d. She should live in her own apartment and rent the condo after purchase.
Explanation:
Buying cost of condo $175,000
Loan interest amount $8,400 [ $175,000 * 80% * 6%]
Insurance premium $10 [560 - 550]
Property taxes $1,000
Maintenance expense $875 [$175,000 * 0.5%]
Total additional cost per year $10,280
If Julie plans to buy the condo she will have to incur additional cost of $10,280 per annum.
b. If the price of condo increases by 3.5% per year then she should consider buying the condo.
Answer: Option (A)
Explanation:
Fair values mostly tends to exist for the marketable security but this in terms does not state that this method is applicable. For instance if investor tends to control the entity with the traded equity, therefore the investment is centralized and thereby, fair-value method of accounting is not being used.
Therefore, from the given options we can state that option (A) does not precisely describes the fair value method.
Answer:
Option (B) is correct.
Explanation:
For a 20 workday month,
cost of gas and productivity = $4 per day
cost of commuting = cost of gas and productivity × 20 workday month
= $4 × 20
= $80.
The total rent he is paying currently is $600 per month that does not include the commuting cost.
Hence, the individual must willing to pay a total of:
= Total rent + Cost of commuting
= $600 + $80
= $680 for an apartment downtown.
Thus, the total amount to be paid willingly is $680.
Answer:
Check the answers below!
Explanation:
There is just one question despite the exercise requires completition of 7 additional numerals.
a. Required down payment = Price of the condominium * interest rate required by the bank.
$95.000 * 20% = $19.000
b. 28% of adjusted monthly income is:
(5000-145)*28%=
1359.4
c. Monthly payments of principal and interest for a 25-year loan.
Using PV of ordinary annuity formula,
with PV of the bank loan =96000*80%=76800
d.Total monthly payment=
671+((346+1400)/12)=
817
e.YES---- 817 < 1359.4
f. Amt. of First payment on the loan applied to the principal:
671-(76800*0.00792)=
62.74
ie.$ 63
g.Total amount she pays for the condominium with a 25-year conventional loan(without including taxes & homeowners' insurance)
671*12 mths. *25 yrs. =
201300
h) So, Total interest paid for the 25-year loan:
201300-76800=
124500
No.of periods=25*12=300
at monthly interest of 9.5%/12=
76800=Pmt.*(1-1.00792^-300)/0.00792
Solving the above, we get the monthly payment as 671
Answer:
a.
Explanation:
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