Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

The case is designed to determine and evaluate the payment amount of a car loan and a mortgage, based on your income. If you prefer, you may assume that your household income is $48,000 per year or $4,000 per month. Based on your income, you may spend 28 percent of your monthly income on housing and 10 percent on a car loan. You are to put a 3 percent down payment on the house and a 10 percent down payment on the car. These will make the loan to value of your loans to less than one: 97 percent on the house and 90 percent on the car.

1. Determine the car payment and mortgage payment with the following conditions: your monthly household income, 10 percent for the car payment, and 28 percent for the mortgage payment. Also, assume a 10 percent down payment on the car and a 3 percent down payment on the house.

2. Create an amortization schedule, and graph the components over time: interest, principal, and balance.

3. Discuss the distributions of principal, interest, and the balance over the life of the loan. You must submit your backup in Excel or other supporting documentation showing how answers were reached.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941371

Have any Question? 


Related Questions in Basic Finance

Name the two ways in which joints loaded in shear resist

Name the two ways in which joints loaded in shear resist loads ? Which kind is slip-critical? Which kind requires control of bolt preload during assembly? What are typical coefficients of friction for slip-critical joint ...

1 how can restrictive covenants in bonds be both an agency

1. How can restrictive covenants in bonds be both an agency cost of debt and a way to prevent agency costs of debt? 2. What are the trade-offs in the agency cost/tax shield trade-off model? How is the firm's optimal capi ...

Barilla is an italian multinational food company which

Barilla is an Italian multinational food company which ‘has significantly believed in B2B e-commerce and, in particular, in EDI (Electronic Data Interchange), especially in terms of Web-EDI, which supports the orderdeliv ...

Mayas incs optimal cash transfer amount using the baumol

Maya's Inc.'s optimal cash transfer amount, using the Baumol model, is $55,385. The firm's fixed cost per cash transfer of marketable securities to cash is $180. In addition, the total estimated cash costs (transfers and ...

Contrast lookback options and barrier options and explain

Contrast lookback options and barrier options and explain the difference between in- and out-options ? Explain how weather derivatives could be used by an electric utility to manage the risk associated with power consump ...

1 how has transportation cost as a percentage of total

1. How has transportation cost, as a percentage of total logistics cost, tracked since 1980? 2. Describe the logistics value proposition. Be specific regarding specific customer accommodation and cost. 3. Describe the fu ...

1 what are some of the factors that make up a communitys

1. What are some of the factors that make up a community's economic profile? How do these factors influence that community's disaster risk? 2. Visit FEMA's disaster declaration archive at http://www.fema.gov/news/disaste ...

1 all firms are required to expense rampd costs incurred

1. All firms are required to expense R&D costs incurred each period. Some firms spend very large sums on R&D, while others spend little or nothing on this area. Why is it important to observe whether a firm has substanti ...

Read the following example and answer the questions that

Read the following example and answer the questions that follow it. Dr. Jones conducts a research study investigating the effects of a new drug that is intended to reduce the craving for alcohol. A group of alcoholics wh ...

Anne has been researching investments and bought a stock

Anne has been researching investments and bought a stock today for $21 per share. Anne's research tells her that she will be able to sell the stock in 5 years for $61 per share. In this case, what interest rate, in perce ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro