FINA 2770 - Project Part 2 Fall 2023

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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…

Home and Automobile Insurance   Newlyweds Joanne and James have had several milestones in the past year. They are newlyweds, recently purchased their first home and now have twins on the way!  Joanne and James have to seriously consider their insurance needs. A family, a home and now babies on the way, they need to develop a risk management plan to help them should an unexpected event arise.     Current Financial Situation:   Assets (Joanne and James combined): Checking account $4,300   Savings Account $22,200   Emergency Fund savings account $20,500   Retirement Account balance $26,000   Car $10,000(JOANNE) $18,000(JAMES) Liabilities (Joanne and James combined):   Student loan balance $0 Credit Card Balance $2,000 Car Loans $6,000 Income: · JOANNE  : $50,000 gross income ($37,500 net income after taxes)   · JAMES:$75,000 gross income ($64,000 net income after taxes)   Monthly Expenses (Joanne and James combined):…

4. Loan Repayment Strategy: You took out a loan of $15,000 for a home improvement project, and the loan has an annual interest rate of 7%. If you want to pay off the loan in 3 years, what will be your monthly payments? 5. Financial Planning problem: Steve and Dixie are a young couple with 2 small children ages 4 and 2. They have struggled to build an emergency savings account and the money always seems to get spent. They feel like they are living paycheck to paycheck. Steve makes about 77k a year and Heidi has chosen to be home with the kids.  What would you recommend that they do to start building an emergency fund? What should be the target goal for how much they save in their emergency fund? I would like you to explain step by step

Need both questions. ....attempt if you will solve both questions. ...thanks   please provide excel functions as well rhank you

Your friend Sue has asked you to help her out as she is developing her financial plan. Help her come up with a plan for her finances and how she can set herself up for financial success! She has an after tax income of $48,000 and budgets $30,000 for required expenses. This leaves $18,000 to spend on debt and savings annually. (Assume all annuity payments are in the form of ordinary annuities.) Part A: Debt Sue has a current balance of $18,000 on her credit card. She has a minimum monthly payment of $500 and an APR of 18.0% (divide by 12 to get the monthly rate). How many months will it take Sue to pay off her credit card debt? Suppose Sue needs to purchase a car. She believes she can spend $550 a month on a car. She has been approved for a 6.0% loan (divide by 12 for monthly rate) for 48 months. What is the maximum amount she can spend on a car so as not to exceed her $550 a month budget? Part B: Savings Sue would like to save up for a down payment on a home she hopes to purchase in…

5 you dont need to include timeline

5 dont have to include timeline

Practice 1 Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65 (she will retire on her 65th birthday). She would like to be able to withdraw $80,000 from her savings account on each birthday for 20 years following her retirement (the first withdrawal will be on her 66th birthday). Your friend intends to invest her money in the local savings bank which offers 4% p.a. compound semi-annually. She wants to make equal annual deposits on each birthday in a new savings account she will establish for her retirement fund. If she starts making these deposits TODAY and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals upon retirement? Any intermediate steps should be rounded to 4 or more decimal places.

Done with Case A. Need help the rest.

Heer  Don't upload any image please

Creating an endowment Personal Finance Problem On completion of her introductory finance course, Marla Lee was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were wealthy alumni of the university she was attending, to create an endowment. The endowment will provide for three students from low-income families to take the introductory finance course each year in perpetuity. The cost of taking the finance course this year is $500 per student (or $1.500 for 3 students), but that cost will grow by 2.1% per year forever. Marla's parents will create the endowment by making a single payment to the university today. The university expects to earn 8% per year on these funds. a. What will it cost 3 students to take the finance class next year? b. How much will Marla's parents have to give the university today to fund the endowment if it starts paying out cash flow next year? c. What amount would be needed to fund the endowment if the…

Creating an endowment Personal Finance Problem On completion of her introductory finance course, Marla Lee was so pleased with the amount of useful and interesting knowledge she gained that she convinced her parents, who were wealthy alumni of the university she was attending, to create an endowment. The endowment will provide for three students from low-income families to take the introductory finance course each year in perpetuity. The cost of taking the finance course this year is $500 per student (or $1,500 for 3 students), but that cost will grow by 2.1% per year forever. Marla's parents will create the endowment by making a single payment to the university today. The university expects to earn 8% per year on these funds. a. What will it cost 3 students to take the finance class next year? b. How much will Marla's parents have to give the university today to fund the endowment if it starts paying out cash flow next year? c. What amount would be needed to fund the endowment if the…

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please  answer only last two requirements You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options:   Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly.   Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly.   Required:   a) Identify which Bank should Molly choose in Investment 1 by computing the effective annual interest rate (EAR)?   b) Calculate the amount of money Molly would…

(Need answer for the question number E and F) You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options:Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly.Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly. Required:a) Identify which Bank should Molly choose in Investment 1 by computing the effective annual interest rate (EAR)? b) Calculate the amount of money Molly would accumulate in…