Questions from Personal Finance

Q: Future Value. How much will you have in 36 months if

Future Value. How much will you have in 36 months if you invest $75 a month at 3% annual interest?

Q: Mortgage Insurance. Justin’s new FHA mortgage is for $131,

Mortgage Insurance. Justin’s new FHA mortgage is for $131,500. How much will his overall mortgage increase with an upfront fee of 1.5%? How much will his total mortgage be with the upfront mortgage in...

Q: Computing a Mortgage Payment. N’Cho just purchased a home for $

Computing a Mortgage Payment. N’Cho just purchased a home for $135,000. He put 10% down and financed the remainder for thirty years at 4.8%. How much is his monthly principal and interest payment?

Q: Ethical Dilemma. Mia would like to purchase a specific home and

Ethical Dilemma. Mia would like to purchase a specific home and knows that she can afford the home, but her income is slightly lower than the amount needed to qualify for the mortgage. She is a waitre...

Q: Tax Savings. This month you made a mortgage payment of $

Tax Savings. This month you made a mortgage payment of $700, of which $600 was an interest payment and $100 a payment of the loan principal. You are in the 24% marginal tax bracket and you will itemiz...

Q: Annual Costs of Renting. Teresa rents her apartment for $850

Annual Costs of Renting. Teresa rents her apartment for $850 per month, utilities not included. When she moved in, she paid a $700 security deposit using money from her savings account that was paying...

Q: Tax Savings. Matt paid mortgage interest of $4,330

Tax Savings. Matt paid mortgage interest of $4,330 during his first year in the condo. His property taxes were $600, and his homeowner’s insurance was $460. If Matt is in a 24% marginal tax rate brack...

Q: Refinancing. Doug and Lynn bought their home three years ago.

Refinancing. Doug and Lynn bought their home three years ago. They have a mortgage payment of $601.69. Interest rates have recently fallen, and they can lower their mortgage payments to $491.31 if the...

Q: Stop-Loss Provision. Pete’s health insurance policy specifies that he

Stop-Loss Provision. Pete’s health insurance policy specifies that he should pay 30% of expenses associated with a long-term illness, and he has a stop-loss provision of $35,000 in his policy. If Pete...

Q: COBRA. Susan recently quit working for a local firm and has

COBRA. Susan recently quit working for a local firm and has yet to find a new job. She knows she can maintain her health insurance from her old employer due to COBRA. How much will it likely cost her...