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

What economic factors play into creating jobs a

What economic factors play into creating jobs? A corporation/business needs to have customers in order to hire workers. How do interest rates affect available jobs?

1 how can partial correlation help researchers explore

1. How can partial correlation help researchers explore possible causal relationships among correlated variables? 2. When is the Spearman rank-order correlation used? 3. What is a dichotomous variable? What correlations ...

Change in taxable income- using the information in problem

Change in Taxable Income:- Using the information in problem 10, if Nick's itemized deductions increase by $2,000, how will his taxable income be impacted? Problem:- Taxable Income. Nick is married and has three children ...

Beta electronics is considering the purchase of testing

Beta Electronics is considering the purchase of testing equipment that will cost $633,000 to replace old equipment. Assume the new equipment will generate before-tax savings of $281,000 over the four years. The new equip ...

Gun manufacturer bloodbath amp beyond currently has a cash

Gun manufacturer Bloodbath & Beyond currently has a cash balance of $750,000. It projects that cash outflows of $390,000 a month. The company pays a fee of $500 every time it sells securities through its broker and the a ...

Future value kyle has 1000 in cash received for high school

Future Value. Kyle has $1,000 in cash received for high school graduation gifts from various relatives. He wants to invest it in a certificate of deposit (CD) so that he will have a down payment on a car when he graduate ...

1 what is the base salary of the international assignee2

1. What is the base salary of the international assignee? 2. How much is the G&S differential and how was it calculated? 3. How much is the housing differential and how was it calculated? 4. What type of allowance did th ...

Given interest rates flat 2bull compute risky pv01 of

Given interest rates flat 2%. • Compute risky PV01 of initial the par CDS spread of 5% and 5 years time horizon. • Assume current spread is 7%, Use the computed risky PV01 to verify that this is approximately riskyPV01*( ...

Craigs manufacturing company is considering the purchase of

Craig's Manufacturing Company is considering the purchase of a new machine for a cost of$250,000. The new machine will have a 5-year useful life and will be depreciated to anexpected salvage value of zero using the strai ...

Question 1 - bondsyou have just purchased 5 million par

Q UESTION 1 - B ONDS You have just purchased $5 million par amount of the 5yr and 30yr US Treasury bonds shown below, at the prices shown. (Assume all bonds are semi-annual compounding.)   Par Amt            Coupon       ...

  • 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