Questions from Personal Finance

Q: If a person saves $62 a month by using coupons and

If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount for a year? (b) What would be the future value of this annual amount over 10 years, assuming an in...

Q: Based on financial and opportunity costs, which of the following do

Based on financial and opportunity costs, which of the following do you believe would be the wiser purchase? Vehicle 1: A three-year-old car with 45,000 miles, costing $16,700 and requiring $1,385 of...

Q: Based on the following data, prepare a financial comparison of buying

Based on the following data, prepare a financial comparison of buying and leasing a motor vehicle with a $24,000 cash price: Down payment (to finance vehicle), $4,000 Monthly loan payment, $560...

Q: Based on the data provided here, calculate the items requested:

Based on the data provided here, calculate the items requested: (LO 6.2) Annual depreciation, $2,500 Annual mileage, 13,200 Current year’s loan interest, $650 Miles per gallon, 24 Insurance, $680...

Q: Based on the following, calculate the costs of buying versus leasing

Based on the following, calculate the costs of buying versus leasing a motor vehicle. (LO 6.2) Purchase Costs Down payment: $1,500 Loan payment: $450 for 48 months Estimated value at end of...

Q: A class-action suit against a utility company resulted in a

A class-action suit against a utility company resulted in a settlement of $1.4 million for 62,000 customers. If the legal fees, which must be paid from the settlement, are $300,000, what amount will e...

Q: Shelly’s variable annuity has a mortality and expense risk charge at an

Shelly’s variable annuity has a mortality and expense risk charge at an annual rate of 1.25 percent of account value. Her account value during the year is $50,000. What was Shelly’s mortality and ex...

Q: Your variable annuity charges administrative fees at an annual rate of 0

Your variable annuity charges administrative fees at an annual rate of 0.15 percent of account value. Your average account value during the year is $200,000. What is the administrative fee for the y...

Q: Mark and Parveen are the parents of three young children. Mark

Mark and Parveen are the parents of three young children. Mark is a store manager in a local supermarket. His gross salary is $75,000 per year. Parveen is a full time stay-at-home mom. Use the eas...

Q: You are a dual income, childless family. You and your

You are a dual income, childless family. You and your spouse have the following debts (total): mortgage, $200,000; auto loan, $10,000; credit card balance, $4,000; and other debts of $10,000. Furthe...