Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem One

A. You have a credit card with a stated interest rate of 1 % monthly. What is APR?

_______________________%

B. Today, you borrowed money for a home loan.  It was a privately placed loan with the venture capitalist (not with a bank). The fair market value of the house and land was $400,000. You made a down payment of $100,000. The stated NAI was 3.75%. Monthly payments start one month from today. The loan had 3.25 points, that you properly “paid”. The term of the loan is 15 years.

i. What is an amount of your scheduled payments?

$________________________

ii. What is the APR on loan?

_________________________%

iii. What balance you owe after 3 years, assuming you make all scheduled payments timely (and no additional payments)?

$________________________

iv. The date is now December 2015. The effective rate for comparable secured loans is 14.5%.  The owner of the note would then like to sell it. What would be a fair value, supposing you and the security fit the norm for comparable secured loans?

$_________________________

v. Do you think the holder would accept from you the amount you computed in IV to pay off the loan? Highlight one:

YES               NO

vi. If your answer in IV was NO, please describe.

problem Two

Your client is a 37-year-old female. Her husband is 45. Both are in good health. You and husband’s attorney have agreed that $10,000 per month in permanent periodic alimony would be proper for husband to pay wife following their impending dissolution of marriage. Under state law, such alimony ends on death of either former spouse or if the recipient re-marries (or cohabits with a member of the opposite gender). You understand permanent periodic alimony is modifiable upon the showing of a substantial change in circumstances, but that lump-sum alimony is not modifiable.  You also understand that lump-sum alimony survives the death or re-marriage (or co-habitation) of either former spouse. You understand neither type of alimony is generally dischargeable in bankruptcy (though you know the law can change over time, as it often does – in unpredictable ways). You are considering asking for lump sum alimony, instead. What amount do you think would adequately and realistically compensate your client if she waived her rights to permanent periodic alimony?  Don’t consider the impact, if any, such a settlement may have on child support or property division.

$______________________________

problem Three

You are 25 and in good health.  You don’t smoke and, as best you understand your genetic make-up, you anticipate living a typical lifespan within the United States. You are unmarried and do not anticipate to marry or to have children. You think that if you were to retire today, you would want to have $2,500,000 in a vested retirement account at age 65. You understand withdrawals from the account would be fully taxable; however deposits in the account, as well as interest or other gains earned by the account would not be taxable (till withdrawal).

A. How much do you thimk you should save, if you were to start today, to accomplish your goal assuming you are female?

$______________________________

B. How much do you think you should save, if you were to start today, to accomplish your goal assuming you are male?

$______________________________

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91595

Have any Question? 


Related Questions in Basic Finance

Charlie is a currency trader and has in inventory 125000

Charlie is a currency trader and has in inventory 125000 Euros that he purchased for $1.17 per Euro. The Euro is now trading at $1.40. What is Charlie's profit or loss on this currency trade? Place your answer in numbers ...

Imagine that you have collected the following set of iq

Imagine that you have collected the following set of IQ scores: a . Construct a simple frequency distribution of these scores. b. Construct a grouped frequency distribution of these scores that includes both frequencies ...

How do options on futures differ from options on the asset

How do options on futures differ from options on the asset underlying the futures? The open interest in a futures contract changes from day to day. Suppose that investors holding long positions are divided into two group ...

1 what is the difference between the short position and the

1. What is the difference between the short position and the long position in a futures market? 2. Give an example of how someone might hedge using a commodity futures and give an example of how someone might hedge using ...

Go to one of the web sites that contain video clips such as

Go to one of the Web sites that contain video clips (such as www.youtube.com) and view some video clips about banking tips. You can use search phrases such as "banking tips." Select one video clip on this topic that you ...

Consider the following facts about hedge funds1 the share

Consider the following facts about hedge funds: 1. "[The] share of industry assets held by firms with more than $1 billion under management has risen gradually from about 75 percent in 2006 to about 82 percent at the sta ...

What is the firms goal in short-term investing how does it

What is the firm's goal in short-term investing? How does it use money market mutual funds? Describe some of the popular money market financial instruments in each of the following groups: a. U.S. Treasuries b. Federal a ...

Explain how an organization determines whether a hedge is

Explain how an organization determines whether a hedge is sufficiently effective to justify hedge accounting? Describe the primary differences between accounting for fair value hedges and accounting for cash flow hedges? ...

1 compare and contrast reactive and proactive consolidation

1. Compare and contrast reactive and proactive consolidation. Provide an example of each. 2. Four aspects of transportation operations management were identified as: (1) equipment scheduling, (2) load planning, (3) routi ...

1 explain how uncertainty concerning future interest rates

1. Explain how uncertainty concerning future interest rates would affect the decision to refund a bond issue. 2. Define the following: direct lease, sale-leaseback arrangement, leveraged lease, and financial (capital) le ...

  • 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