Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) You are saving for college education of your 2 children. The difference between their ages is 2; one will start college 15 years from today and other will start 17 years from today. You find out approximately the college expenses of your children to be= $45,000 per year per child, to be paid at the starting of each school year. Annual interest rate is= 7.5 percent. Your deposits start one year from today. You will make your last deposit when your oldest child moves into the college. Suppose 4 years of college.

How much money should you deposit in the account each year to finance education of your children?

2) You wish to purchase your own house, after a lot of searching you discover a appropriate house selling at= $410,000. You don’t have all that money, so you go to bank to safe a mortgage. Your banker gives the offer: Put 20% down payment and bank would charge you 2.5% compounded semi-annually, with 25 year loan maturity. Term 3 years.

After five years of selecting to take offer (end of year), you win lottery and make a decision to give off your credit completely. How much would you be indebted the bank then?

i) $73,105.1
ii) $82,817.4
iii) $137,670.4
iv) $155,960.5
v) None of the provided answers is right.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914044

Have any Question? 


Related Questions in Basic Finance

Read one practical article of how psychology affects

Read one practical article of how psychology affects behavior when paying taxes. You can easily retrieve possible articles by doing an online search using the terms "psychology" and "paying taxes." Summarize the main poi ...

Both old line industries and new tech inc use the irr to

Both Old Line Industries and New Tech, Inc., use the IRR to make investment decisions. Both firms are considering investing in a more efficient $4.5 million mail-order processor. This machine could generate after-tax sav ...

You are prohibited from discussing this assignment with

You are prohibited from discussing this assignment with other students. Construct an Excel spreadsheet that determines the following values: 1. Black-Scholes-Merton model call option without dividends. 2. Binomial model ...

What are current assets if a market is price efficienta

What are current assets? If a market is price efficient, a. Can an investor "beat the market"? b. Which type of portfolio management-active or passive-is best? What does the financing decision of a firm involve? List the ...

Part -11interest income how can gross interest income rise

Part -1: 1) Interest Income. How can gross interest income rise while the net interest margin remains somewhat stable for a particular bank? 2) Bank Leverage. What does the assets/equity ratio of a bank indicate? 3) Loan ...

What is the sum of the cash flows from operating activities

What is the sum of the cash flows from operating activities, financing activities, and investing activities? What does it mean that the financial statements are prepared based on historical cost? Where can an investor fi ...

If futures prices are less than spot prices the explanation

If futures prices are less than spot prices, the explanation usually given is the convenience yield. Explain what the convenience yield is. Then identify certain assets on which convenience yields are more likely to exis ...

1 why do adjustable rate mortgages arms seem to be a more

1. Why do adjustable rate mortgages (ARMs) seem to be a more suitable alternative for mortgage lending than PLAMs? 2. List each of the main terms likely to be negotiated in an ARM. What does pricing an ARM using these te ...

What is diversifiable risk what is the role of

What is diversifiable risk? What is the role of diversification in the capital asset pricing model? If investors are risk averse, which would they prefer: a stock with an expected return of 5% with a beta of 1.2 or a sto ...

Calculate the total lift force on the arctic hut shown

Calculate the total lift force on the Arctic hut shown below as a function of the location of the opening. The lift force results from the difference between the inside pressure and the outside pressure. Assume potential ...

  • 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