Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

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.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9525503

Have any Question?


Related Questions in Operation Management

Please i need a complete answer for each point of the

Please I need a complete answer for each point of the following : Action Items: Create or choose any business organization of your choice and describe the organization according to the below: 1. To create a new company o ...

1 describe the process that will be used to obtain approval

1. Describe the process that will be used to obtain approval on the project contracts. • Who will be involved in the contract approval process? • Who will ultimately authorize execution of the project contracts? • How do ...

Part 1 ordering calendars at walton bookstore this example

Part 1: Ordering Calendars at Walton Bookstore. This example illustrates the problem of using averages instead of distributions. How does this example illustrate the flaw of averages? Part 2: What are the advantages and ...

In september knowles the owner of a professional hockey

In September, Knowles, the owner of a professional hockey club, began negotiations with Meyer, a professional hockey player, for Meyer’s services for the following two years. The two agreed orally to a salary of $3000 a ...

Arduino is one of the largest selling items in adafruit

Arduino is one of the largest selling items in Adafruit, which deals in circuit boards. The circuit board sells for $150 per unit and costs $100 to purchase. Based on the previous sales data, the average monthly demand i ...

In this assignment you will recommend the components of a

In this assignment, you will recommend the components of a career development planning program and explain how the plan will integrate the organization's mission and value statements. Consider the following scenario: You ...

Question 1what are the three generic types of teams

QUESTION 1 What are the three generic types of teams? Decision, task, and self-directed Task, self-reliant, and decision Self-directed, task and competent Task, compliant, and competent QUESTION 2 Why is team competency ...

Amazon brainstorming questioneach year fortune magazine

Amazon Brainstorming Question Each year Fortune magazine publishes a "Most Admired" list of the top companies in the United States. Firms are rated on these eight dimensions: innovativeness, quality of management, long-t ...

Assignmentdefine critical thinking what are the criteria in

Assignment: Define critical thinking. What are the criteria in which it might be evaluated? What are the biases involved in critical thinking? Explain a recent high-profile court case that has had to overcome such biases ...

Assignmentfirms trading across country and political

Assignment Firms trading across country and political boundaries have various methods of ensuring payment. One of the methods is the use of International Letters of Credit. Using the Internet, do the following: 1. Find a ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As