Debt and Credit Card Debts

In addition to the three-piece sofa set above, Kelsey and Cody also purchase a $249 coffee table and $199 end table. What is the total amount financed, including $153 for tax and $75 for delivery?

Jim and Laura Buyer visit the local car dealership because they are interested in buying a new car. The car they currently have is aging and is starting to have mechanical problems. Jim and Laura would share the new car, and use it to go back and forth to work and school. Before going to the dealership, Jim and Laura decide that they can only afford $400.00 a month in car payments.

1. Write checks to pay the following bills. The beginning balance in the checkbook is $4562.79.

| |finance the balance. How much will each monthly loan payment be if they can borrow the necessary funds for 30 years at 9% per |

Home ownership is the American dream! It is one of the most costly purchases an individual or family can make in their lifetime. Some people save until they have cash to purchase however, many people borrow money from a bank or lending institution; when a person borrows money to purchase a home the loan is called a mortgage. The lender is called the mortgagee and the borrower is called the mortgagor; banks have several different types of mortgages: fixed rate mortgage, adjustable rate mortgage, investment mortgage and much more. Borrowers have to undergo the lender underwriting process to show financial capability of repaying the mortgage (Makarov & Plantin, 2013). In this article I will use a fictitious person named “Julianna,” she is in the process of buying her first home at age 30; I will be her lender and will use mathematical procedures to find out what is her down payment, principle, installment payment, points (closing cost), mortgage maturity value and total interest paid.

Net Price = list price – trade discount amount = $300.00 - $15.00 = $285.00 6. Lee Company bought computer equipment - $7000.00, terms 4/10, n/30, FOB shipping point  Discounted price = List Price x (1-Discount) = $7000 x (100%-4%) = $7000 x 96% = $6720.00 Discounted price  Final Payment =

1. A condo in Orange Beach, Alabama, listed for $1.4 million with 20% down and financing at 5% for 30 years. What would the monthly payment be?

In addition, he needs to borrow $173.5 at the risk-free borrowing rate of RF,b . The

would be $200. She wants to make sure that she can afford this monthly loan payment, so she is creating an

A second mortgage loan officer, Sarah Harris, agreed to a $450,000 mortgage for a 20-year period at 8% interest rate after appraisal based on an income approach using 10.9% capitalization rate. Although not certain of her judgment, she considered Alexander’s projected figures realistic, but required him to personally sign the note as additional protection to the bank against loss.

8. If you want to purchase a home. You have $15,000 to put down. All you can afford is $1,500.00 per month and you do not want to finance for more than 15 years @ 6% interest, (your taxes will be $85.00 per month and insurance $200.00 a month), what is the amount you can pay for your home? (Show all your work)

Panna wants to buy a new suite of furniture for her flat. The furniture costs £3000 from a furniture store in her local town. The saleswoman suggests that Panna takes out a loan from the store’s finance company to fund the purchase of the furniture. The repayment loan from the finance company would be at a fixed APR of 9 per cent for a repayment term of between one and four years, which Panna can select herself. The loan would take the form of a secured loan.

Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months and no salvage value. (Assume Natalie decides to record a full month’s worth of depreciation, regardless of when the equipment was obtained by the business.)

First, not much is known about the vacant land, we cannot determine the Lagoon beach property’s worth. If she has $1,075,000 (Figure 6) in cash to be put as a down payment to satisfy one of the bank conditions (25% of the purchased amount), then there is no need to pledge the Lagoon beach property as a collateral. If we assume that she has $500,000 cash available as a down payment, this still will not be sufficient to secure a loan from the bank, since she will need to come up with the

Yes, offering the cash discount would be justified financially because it could reduce the average collection period from 75 days to 45 days and