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.
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- Hi I have a question regarding Austrlian Retirement and Financial Planning. In this example, the couple are retired and one of them is ill and looking for a retirement home, the home is going to cost $450,000 deposit. Neither of the couple work and draw 50,000 from their super in order to stay afloat. They have 20,000 and 562,000 in super combined, have a 900,000 dollar home. They also have 10,000 worth of home contents, a 15,000 dollar vehicle, and 55,000 cash in the bank. It is important to note they have 0 debt and everything is fully paid off. Neither of them have ever received pension money or government support. Myrtle wishes to put bob in an aged care facility, and when that is done she wants to return to work part time. 1. How will Myrtle's income be funded of $40,000 per annum be financed now, in the future and when she retires in 10 years time?kenneth just graduated from college and has started his fisrt job in sales. basedd on conversation swith his manager, kennneth believes his income will encrease substansially over the next couple years. his urrent gross monthly income is $3400. although kenneth's current works fine, it does have a lot of miles on it. as a result, he would like to purchase a new car. kenneth has some student loans, credit cards debt, and a car loan. his monthly required payments are $180 for student loans, $140 for credit card debt, and $245 for his car loan. h has a roommate and currently pays $585 per month for hisportion of the rent. (a) if kenneth wants to keep his debt-to-income ratio less than 34%, what is the maximum monthly payment he could have on a new car loan? assume that kenneth could sell his current car and pay off the remaining balance of his current car loan the maximum monthly payment that kenneth could have on a new car loan is $______Deb and Rusty have just gotten married and wish to buy a home. They both work in Boston and have a combined income of $90,000. They found a modest starter house which they are buying for $350,000. 1. They plan to use their $40,000 is savings to cover the closing costs the bank will charge them, which are 1% of the amount they borrow from the bank. The rest of the savings will be used as a down payment. Determine the largest amount they can use for a down payment and still pay the closing costs. 2. Using the amount Deb and Rusty have to borrow from part 1, open Excel and create a 20-year amortization schedule, giving monthly payments for the amount they borrowed at a 4.5% annual interest rate. You must use the pmt function in Excel to compute the monthly payment. Title this worksheet Amortization. For your answer to this question write “See Excel Workbook”. 3. Use the amortization schedule to compute the total amount of interest they will pay to the bank over the 20 years. 4. Create a…
- Case Study: James (28) and Nadine (27) is a young married couple, with 2 children, ages 4 and 2 years old. Both are working, earning a combined household income of Php 45,000.00 per month net of income taxes. They are living with relatives (rent-free), BUT would like to get their own house and lot some day. Checking the real estate market at present, they estimated that a home they wish to have would cost them Php 4M pesos in 2032 (after computing for cost adjustments). Typically, a 20% DP is required in getting a property, and the remaining balance payable in 15 years. They currently have a joint savings account of Php 600,000.00. The family expenses in a month is Php 25,000.00 with no debts. They want to prepare for this purchase, and buy a home 10 years from now. 1. How much is the DP and estimated monthly amortization for 15 years? (use Home Loan Calculator and select the interest rate of 6.28% fixed for 4-5 years.) 2. Where will they put their Php600K-savings to maximize the…Use RIA Checkpoint to answer the following questions. 5. Frank and Farrah, who are twins, ask you to research an issue for them. Both are starting new jobs as staff accountants. Farrah decides to start saving $400 per month and intends to keep saving $400 per month for 20 years. Frank, on the other hand, desperately wants a new sports car and thus decides he is going to wait five years before starting his $400 per month savings plan. Frank figures $400 per month for five years is only a difference of $24,000 so it will not make much of a difference if he waits five years before starting to save. What difference will delaying his savings really make? Assuming a 6 percent rate of return, using the Savings tools in Checkpoint, what is the difference in the future value of Farrah’s and Frank’s savings plans? (Assume the starting amount = zero). a. $187,065. b. $89,574. c. $107,253. d. $66,935. e. None of the above. 6. Edward received two gifts in 2023. A car valued at $30,000 from his…In this question we are going to look at how small differences in your saving and spending practices can have big effects on your future financial circumstances. After paying all of your yearly rent/mortgage payments as well as other living costs like food and electricity, you have $2000 left over. You have the option of spending or saving this money or a combination of both. You are 21 today and you plan to retire when you are 65. If you put money in your savings account you will receive 5% per year compounded yearly. Make a diagram that shows how much you have in savings in each of the following cases: A. You spend $1500 and save $500 B. You spend $1000 and save $1000 C. You spend $500 and save $1500 D. You spend $0 and save $2000 Graph all situations on one graph. Assume that the amount of money you have after your living costs is constant at $2000 throughout your working life. thanks!!
- I need help creating this in Excel Jane wants to buy a new car but has decided that by the time she saves $33000 to buy the new car she wants the price of the car will have gone up. She decides to borrow the money and purchase the car today. She would like to pay off her car in four years. The local bank will loan her $33000 at 8.5% APR. Construct a loan amortization for her loan. She wants to know how much the payments will be and what the total cost of the loan is. The dealer has offered to finance her at 1% APR with a monthly payment of $250 for four years. Unfortunately the balance will be due at the end of four years. Construct a loan amortization for this loan. Jane wants to know how much she will owe at the end of the four years. You can fit them both on one spreadsheet. Upload your finished spreadsheet.Deb and Rusty have just gotten married and wish to buy a home. They both work in Boston and have a combined income of $90,000. They found a modest starter house which they are buying for $350,000.1. They plan to use their $40,000 is savings to cover the closing costs the bank will charge them, which are 1% of the amount they borrow from the bank. The rest of the savings will be used as a down payment. For example, if they borrow $330,000 using $20,000 for a down payment, the closing costs will be $3,300, which still leaves them some savings. Determine the largest amount they can use for a down payment and still pay the closing costs.2. Julie has decided save up and donate $5000 to the college she attended. She would like to make that donation in 5 years. She gets paid twice a month. Her savings account earns a 4.75% interest rate. How much does she need to save from each pay period to hit her goal? 3. Mike and Jenn want to save $12,000 for their son's mission. He is 12 years sold and plans to leave at age 18. They plan to invest this into an account making 4.6%. How much to they need to save each month to achieve their goal? 4. Randi plans to save $100 per month for the next 5 years to be able to give a large donation to her favorite charity. She is hoping to have $8,000 in the account at that time. What interest rate will she have to earn to hit her goal?
- 1. Josiah, a 16 year old high school student, plans to use the $5,000 for a car down payment in two years. He would like to earn a good rate of return but needs to access his money exactly in two years. He prefers something with a lower risk as well. What is the best type of investment for Josiah? Why?2. Abigail is 22 years old and would like to save up for emergencies. She wants to be able to access her money as needed and incur a low risk. What is the best type of investment for Abigail? Why?2. Wally wants to buy a house instead of renting, and has found a bank that is ready to loan him a sizable amount at 5% interest per year. He has identified a house that he would like to live in for 15 years. He thinks that with his carpentry skills he can easily upgrade the house to sell at the end of 15 years for $275,000. Presently, with the economy not doing so well, Wally believes that all he can afford to pay for the house every month-end is the rent that he presently pays his landlady of $750 per month. How much can he expect from the bank if he plans to use the entire amount that he will receive on selling the house after 15 years to make a balloon payment to the bank?usingTVM formulas. Aya and Sakura would like to buy a house and their dream home costs $500,000. Their goal is then to save $50,000 for a down payment and then would take out a mortgage loan for the rest. They plan to put their monthly saved amount in a conservative mutual fund that has a track record of a 4.25% rate of return. To be sure they don't go spending this money on other things, they are going to move it into their investment account at the beginning of each month. Their hope is to be able to buy this home in 7 years. What would their monthly savings amount have to be to reach this goal? What will be the total interest earned?