Financial Function Homework

REFLECTING Should Jill consider a payday loan to purchase the refrigerator? Explain. Hint APR means annual percent rate. 2. Jill is buying a new refrigerator. She cannot afford to pay cash. Should she use a credit card or get a personal loan? Justify your answer. 3. Liam, a taxi driver in Revelstoke, wants to buy a new taxi. He was approved for the loans in this chart. a) What should Liam think about when he chooses a loan? should Choose the Lost Fixed APR payments for 4 Apprenticeship and Workplace 11 secured personal 5.5% loan auto loan 7.5% b) Which loan should Liam choose? Explain why. 4 yr 6 yr 4. Hannah says that using payday loans and cash advances on credit cards are bad choices for borrowing money. Do you agree or disagree? Explain. NEL

Planning a new car purchase . Olivia Green has just graduated from college and needs to buy a car to commute to work. She estimates that she can afford to pay about $450 per month for a loan or lease and has about $2,000 in savings to use for a down payment . Develop a plan to guide her through her first car -buying experience , including researching car type , deciding whether to buy a new or used car , negotiating the price and terms , and financing the transaction

Discuss the following scenarios, then to decide which option is best and why. Susan and Jose rent an apartment and have been saving for a house. They now have $10,000 in the bank. Susan owes $4,000 on a low-interest credit card; Jose owes $4,500 on his car. Susan wants to pay the credit card and car off to eliminate the debt. Jose wants to keep the cash in the bank and continue saving for the house. What are the pros and cons of each one’s argument? Please be detailed and concise. Feel free to use a chart or table to represent your argument. Jack is a 40-year-old construction worker. He makes $33,500 per year. He only saves 5 percent of his salary per year since it is all he feels he can afford. His friend Joe suggests that he invest his money conservatively so that it won’t lose as much value if the market takes a nosedive. His other friend Jim thinks that investing aggressively with high risk is the way to go since Jack has several years to work to make up for any losses. What do…

Which account should Scenario they use? Chris wants to put money aside so he can buy his a Checking Savings mom a birthday present. Sam wants to buy school supplies for a project she is Checking Savings working on. Aisha wants to withdraw $20 from an ATM so she can buy a movie ticket and go watch the movie with her friends. Checking Savings Neil rides his bike every day to school and back and is responsible for maintaining his bike. He wants to d Checking Savings www.ngpf.org Last updated: 12/10/20 make sure he has money to fix or replace anything that might break in the future. Rosa is going ona vacation with her parents in a few e months and wants to put the money she just got from the holidays aside to buy souvenirs. Checking Savings

REFLECTING Should Jill consider a payday loan to purchase the refrigerator? Explain. Hint APR means annual percent rate. F welding. He needs money 2. Jill is buying a new refrigerator. She cannot afford to pay cash. Should she use a credit card or get a personal loan? Justify your answer. 3. Liam, a taxi driver in Revelstoke, wants to buy a new taxi. He was approved for the loans in this chart. a) What should Liam think about when he chooses a loan? Choose a louh APR Loan secured personal loan auto loan 7.5% 5.5% b) Which loan should Liam choose? Explain why. Fixed payments for 4 yr 6 yr 4. Hannah says that using payday loans and cash advances on credit cards are bad choices for borrowing money. Do you agree or disagree? Explain.

Jamie Lee Jackson, age 24, now a busy full-time college student and part-time bakery clerk, has been trying to organize all of her priorities, including her budget. She has been wondering if she is allocating enough of her income towards savings, which includes accumulating enough money towards the $10,500 down payment she needs to begin her dream of opening a cupcake café. Jamie Lee has been making regular deposits to both her regular, as well as her emergency savings account. She would really like to sit down and get a clearer picture of how much she is spending on various expenses, including rent, utilities, entertainment and how her debt compares to her savings and assets. She realizes that she must stay on track and keep a detailed budget if she is to realize her dream of being self-employed after college graduation. Use the details below to complete Jamie Lee's personal financial plan to determine her financial position. Each answer must have a value for the assignment to be…

Jamie Lee Jackson, age 24, now a busy full-time college student and part-time bakery clerk, has been trying to organize all of her priorities, including her budget. She has been wondering if she is allocating enough of her income towards savings, which includes accumulating enough money towards the $10,500 down payment she needs to begin her dream of opening a cupcake café. Jamie Lee has been making regular deposits to both her regular, as well as her emergency savings account. She would really like to sit down and get a clearer picture of how much she is spending on various expenses, including rent, utilities, entertainment and how her debt compares to her savings and assets. She realizes that she must stay on track and keep a detailed budget if she is to realize her dream of being self-employed after college graduation. Use the details below to complete Jamie Lee's personal financial plan to determine her financial position. Each answer must have a value for the assignment to be…

Your grandmother gave you money to start saving for retirement. You have $7.500 to begin investing in a GIC. Consider all factors in the decision. In a brief paragraph, justify your decision, including a description of all factors that would affect That dec

draw an issue tree: Recently, James got married and wanted to move to new houses so he wants to save $100,000 dollar in three years. James also is having 2nd baby so he need larger space, and his wife started a job so she needs a new room for job as well. But in order to go to larger house he needs another $100,000. How can he get the money? And getting loans and making money leading to difficulties in their work balance is not an option. How will he make money of $100,000 within 3 years.

1. Calculate how long it will take Aina to accumulate enough money to buy the car in each of the investment opportunities. Explain which investment opportunity should be taken by Aina.

With private mortgage insurance, many lenders will allow you to borrow more than 80% of the appraised value of the home. What is the purpose of this action? O The insurance will pay for damages to the home during the course of the mortgage O It is required by federal and state law It protects the lender in the event the borrower is unable to make the mortgage payments O It pays the mortgage in the event the borrower dies during the course of the mortgage O None of the above

Shanice works in finance for a small manufacturing company and is working on next year’s budget. She has been doing research to compare the cost of outsourcing some upcoming jobs versus the cost of purchasing the equipment to keep the jobs in-house. In what step in financial planning is Shanice involved? Multiple Choice developing financial statements for outside investors forecasting short-term financial needs establishing financial controls and tax policy forecasting long-term financial needs

What is the amount of Laura’s monthly cash outflows if she chooses to rent the apartment by her herself? Use the rent amount for the one bedroom apartment to complete her budget?

Read the passage and answer the following question(s). dis ins Homeowner and Renters Insurance: Protect Your Belongings You may be able to save hundreds of dollars a year on homeowners insurance by shopping around. You can also save money with these tips: Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium. Ask your insurance agent about discourks. You may be able to get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material. Persons over 55 years of age or long-term customers may also be offered discounts. OD. Insure your house NOT the land under it. After a disaster, the land is still there. If you don't subtract the value of the land when deciding how much homeowners insurance to buy, you will pay more than you should. Don't wait till vou have lor

Many credit cards offer features that are tailored to users' preferences and lifestyles. In the following situations, identify which credit card is a good choice to achieve the user's goal. Special Bank Credit Cards for Different Lifestyles and Preferences Beth has a history of charging a lot on her credit card and doesn't carry a high monthly balance. Beth loves cars and plans to trade in her cars every two years, if not more often, for new ones. Which credit card is the best choice? 0 0 A reward card with an automobile rebate program A secured card Any affinity card Why is that card the best choice? O Beth's low monthly balances will protect her collateral. O The high-charge volume will provide funding for Beth's favorite political organization. The high-charge volume will provide points to use toward supporting Beth's relatively expensive plans. It is January and Eleanor just realized that she forgot to make her annual contribution to her favorite charity. She wants to make sure she…

11. Can I afford this home? - Part 1 Can Valerie and Shen afford this home using the monthly income loan criterion? Next week, your friends Valerie and Shen want to apply to the Tenth National Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $155,000. Given your knowledge of personal finance, they've asked for your help in completing the Home Affordability Worksheet that follows. To assist in the preparation of the worksheet, Valerie and Shen also collected the following information: • Their financial records report a combined gross before-tax annual income of $85,000 and current (premortgage) installment loan, credit card, and car loan debt of $1,240 per month. • Their property taxes and homeowner's insurance policy are expected to cost $3,488 per year. • Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15-year loan. They have accumulated savings of $38,500 that can be used to…

II. Case Application. Answer the following situations by applying what you have learned from the previous discussions. A customer says, "Insurance is a waste of money. If and when I suffer a financial loss because of an accident or some other event, I can pay for it from my savings account." As an insurance agent your primary goal is to change this kind of mindset, how would you persuade this person to purchase insurance? Design a strategy. At 30, Alyssa Valdez invested P50,000 in a time deposit which earns 3% per annum. With the same interest rate, how much would her earnings be at age 35 if she reinvests the interest with the principal. Show your solution

Joe bob wants to buy a car and will need to take out a loan in order to make the purchase. His current monthly income is 3,500 per month. His mortgage payment is 900 per month, and his student loan payment is 350 per month  according to the affordability formulas given can he afford to take out another loan? when should he follow the affordability formulas? In what case should he not? how could taking out the car loan impact his other priorities?  what is the affordability formula I need to use as well

Can Olivia and Anthony Afford This Home Using the Monthly Income Loan Criterion? Next week, your friends Olivia and Anthony want to apply to the Fourth Global Bank for a mortgage loan. They are considering the purchase of a home that is expected to cost $125,000. Given your knowledge of personal finance, they’ve asked for your help in completing the Home Affordability Worksheet that follows. (Note: When completing the form, round each dollar amount to the nearest whole dollar.) To assist in the preparation of the worksheet, Olivia and Anthony also collected the following information: • Their financial records report a combined gross before-tax annual income of $125,000 and current (premortgage) installment loan, credit card, and car loan debt of $1,823 per month. • Their property taxes and homeowner’s insurance policy are expected to cost $3,125 per year. • Their best estimate of the interest rate on their mortgage is 7.5%, and they are interested in obtaining a 15-year loan.…

Mariah is looking to earn extra money this summer by walking her neighbor Jamie's dog each day. Jamie needs her dog walked each day but does not have the extra time, fortunately her neighbor Mariah is interested in earning extra money for the summer. Mariah, however; does not want to spend a lot of time, maybe twenty minutes to half an hour. She was hoping to earn $10-$12 each day. Jamie does not want to spend a lot of money maybe $8 each day but wants her dog walked adequately; possibly an hour each day. What is Jamie's reservation point? $8

Kayla Gordan plans to borrow $300,000 from ANZ bank to set up a Nail Salon.She currently has $10,000 in savings and she will use her house as security for the loan.Which of the following best represents a risk associated with this financing method? A.Kayla's proportion of business ownership will be diluted B.Interest payments are tax deductible C.Bank will repossess her house if she defaults on the loan D.Kayla is required to pay dividends to the bank

Tamara is not a big spender and rarely has a credit card balance over $500. What should Tamara look for in a credit card given the way she uses one?   Group of answer choices a. A long grace period b. A low interest rate c. A high annual fee d. No grace period e. A high interest rate

According to personal finance experts, what is one way to start getting out of debt? Take out a loan that you do not have to repay for at least 10 years. Ask a friend or family member if you can borrow money to pay your car loan each month. Cut up your credit cards and start living on a cash-only basis. Apply for new credit cards and use those to make purchases instead of your bank debit card.

Question from Business Math Course: 1) After reviewing the CPI inflation calculator at inflationdata.com, Hanna Lind realized the importance of creating an investment plan for her future. She would need $10,773.00 in 2018 to have the same purchasing power her $9,100 (stored in a fireproof safe in her home since 2000) had when she put it there. To protect her savings against further inflation and to help her prepare for a healthy financial future, Hanna deposits her $9,100 in an investment account in 2018 earning 6% interest compounded quarterly. How much will Hanna have in her account in 2028? (Use attached Table provided.)

This is a Debt Coverage Ratio or DCR question for part a and a CAP rate question for part b]. Wendy is going to purchase a commercial building and is working with a commercial lender at her local bank. The bank has some loan parameters that Wendy must follow. Understanding the rules will allow her to calculate her cash, income, and payment projections. The bank requires a 1.4 debt coverage ratio for her project. Wendy needs to calculate her net operating income or NOI first. The debt coverage ratio is based on this number. Then she will apply for a 20 year loan at 5% with annual payments. Information on the property includes: Gross rents- $780,000 Vacancy 5% Salaries $85,000 Other Fixed Expenses $125,000 Variable Expenses 20% of gross rents.   NOI=_________________ Use the NOI and Debt Coverage requirement to calculate the answer.   What is the largest annual payment the bank will allow? If Wendy had to buy the property at a 6% CAP (capitalization) rate, what is the asking price?

Ms. Aisha needs a smartphone to attend her online classes, which she tells her elder sister to buy for her. In this scenario Ms. Aisha elder sister is a O a. Buyer O b. Initiator O c. User O d. Decider

When Molly adds all of her payments, how much will the car cost her?