Questions from Personal Finance

Q: John had $50,000 in salary this year. If

John had $50,000 in salary this year. If this salary is increasing 4 percent annually and inflation is projected to rise 3 percent per year, calculate the amount of return he will receive in nominal a...

Q: Becky made a $30,000 investment in year 1,

Becky made a $30,000 investment in year 1, received a $10,000 return in year 2, $8,000 in year 3, $11,000 in year 4, and $9,000 in year 5. What was her internal rate of return over the five-year perio...

Q: Dorothy has the following projected cash flows: income, $65

Dorothy has the following projected cash flows: income, $65,000; fixed operating costs excluding interest, $44,000; variable outlays, $7,000; interest cost, $5,000; and repayment of debt, $6,000. Does...

Q: For the $8,000 loan John needed, he was

For the $8,000 loan John needed, he was given a choice of in loans with the following characteristics. a. $1,200 in interest paid at the end of the period. b. $1,200 in interest paid at the beginning...

Q: Melinda has a 15-year fixed-rate mortgage for $

Melinda has a 15-year fixed-rate mortgage for $150,000 at a 6.5 percent rate. Calculate her monthly mortgage payments.

Q: Martha has seven years remaining on her $160,000 mortgage

Martha has seven years remaining on her $160,000 mortgage, which has a 7.5 percent rate. She would have to pay $4,500 to refinance. Martha expects to live in the house for another five years. She is i...

Q: Monica continued to worry about the couple’s financial future. She began

Monica continued to worry about the couple’s financial future. She began to question their investment in a home. She asked whether would be better to sell their home now and invest the proceeds. She e...

Q: How much would a person save by borrowing money at 6 percent

How much would a person save by borrowing money at 6 percent for a home equity loan versus 18 percent for a credit card loan. Assume a marginal tax bracket of 30 percent.

Q: Given the following statistics, calculate the mortgage cost percent.

Given the following statistics, calculate the mortgage cost percent. Annual mortgage interest ……………………………………$ 9,000 Annual principal payment ……………………………………….2,000 Annual insurance and real estate tax...

Q: Elena is in the 28 percent bracket and has the following real

Elena is in the 28 percent bracket and has the following real estate and non real-estate related costs. Nonmortgage interest and principal ……………………$ 4,000 Mortgage interest …………………………………………………15,000...