Bob earns $48,000 per year and his wife Susan earns $50,000 per year gross. They have debt as follows: a carloan with $450 per month payment, a visa whichrequires a minimum monthly payment of $100, andcombined student loan payments totaling 350 permonth. The bank allows a 32% GDS and 40% TDS. Thehouse they wish to purchase has been appraised at $210,000, however the purchase price is $215,000because it is a seller's market. Monthly property taxesand heating costs are $400 per month total. They areapplying for a conventional mortgage (using 80%maximum as the bank's rule) and their selected term isat 3.5% interest lender posted rate and the amortizationis 25 years. Currently, consider the Bank of Canadabenchmark rate to be 5.25% for stress test purposes onconventional mortgages. Which of the following iscloses to the maximum amount of a mortgage loan thatBob and Susan qualify for, based on the Total DebtService (TDS)? a. $393,908 b. $350, 250 c. $362, 554d. $322,252

Annual income=$48000 and $50000Car loan=450Visa monthly payment=100Student loan=350Price of…

Answered: O,000 per year gross. They have debt as…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Weathers Catering Supply, Inc., needs to borrow $145,000 for 6months. State Bank has offered to lend the funds at an annual rate of 8.6% subject to a 10.4% compensating balance. (Note: Weathers currently maintains $0 on deposit in State Bank.) Frost Finance Co. has offered to lend the funds at an annual rate of 8.6% with discount-loan terms. The principal of both loans would be payable at maturity as a single sum. a. State Bank's semi-annual rate is ? (Round to two decimal places.) State Bank's effective annual rate is ? (Round to two decimal places.) Frost Finance's semi-annual rate is ? (Round to two decimal places.) Frost Finance's effective annual rate is ? (Round to two decimal places.)
Michael have regular savings account with an available balance of 5000 how much net interest is earned by this deposit account for a month of the prevailing bank's interest rate is 0.5% per annum and the withholding tax is 20%
In the example below, we will use year-end assets. Bank A receives $70 in deposits at 5% and, together with 40 in equity, makes a loan of $90 at 7%. The remaining of assets is G-Bond. We will ignore taxes for the moment. Bank A Cash Reserves for Deposit ? Loan 7% $90 G-Bond 5% ? Deposits 5% $70 Equity $40 Total Assets $? Total Equity and Deposit $110 If Cash Reserves for deposit is at least 8% of the deposit under the Basel Accord, how much of the G-Bond Bank A should purchase? $17 $14 $16 $18 $20 $15 $19 $21
You have just opened a savings account which pays monthly interest at a rate of j12 = 5.5% p.a. You wish to accumulate $20,000 by depositing the same amount into the account at the end of each month, for 2 years, starting in a month's time. a) Determine the required size for the monthly deposit, R. Apply a sanity check. b) Construct a sinking fund table showing 24 deposits with a fixed interest rate of 5.5%. Describe and apply a sanity check to your table. c) Suppose that the interest rate is renewed every three months (quarterly) over the course of the two years as follows: Year 1 Q1 5.5% 02 Q3 2.8% 4.5% 04 01 4.0% 4.2% Year 2 Q2 04 03 3.8% 2.5% 7.5% If you maintain the same monthly deposit of R determined in part a), find the size of your sinking balance after two years. Will you meet your target of $20,000? Describe and apply a sanity check for your answer. d) Construct a sinking fund table showing 24 deposits with the variable interest rate. Describe and apply a sanity check to…
4. Saltanat borrowed money at 18% discount, after 2 months she returned 20000 soms. Find effective interest rate, knowing that a bank charges 500 soms for loan processing. (%).
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Michael have regular savings account with an available balance 5,000.00. How much net interest is earned by this deposit account for a month of the prevailing bank's interest rate is 0.5% per annum and the withholding tax is 20%.
You make the following monthly payments. Your total net income (net of taxes) is $3,000. Calculate your total debt-to-income ratio. The minimum payment on the credit card is $30. Assume rent as debt. Entertainment Rent $600 Car payment $253 Credit card payment $100 Utilities $200 Groceries $250 36%. 42%. 34%. 39%. Health insurance Taxes Gasoline Retirement savings Student loan payment $300 $500 $450 $185 $150 $300
Jami's Home Repair borrows $6,000, at 13.75% interest, for 330 days. Use the exact interest method to find the amount of interest that the bank will collect. (Round to the nearest cent.) Ⓒ$600.00 Ⓒ$640.00 $745.89 Ⓒ$8,200.00
If you deposit $15,000 at EOY 1, $10,000 at EOY 2, and $5,000 at EOY 3 into a savings account which earns an annual interest rate of 22% compounded continuously, how much will you have in your account at EOY 5? O a. $50,779 O b. $48,222 O c. $63,275 O d. $58,830 O e. $40,751i
Bank A makes a loan of $10,000 to Company B at a 10% interest rate. Which of the following is the correct journal entry for Bank A the day the loan is made? Group of answer choices Option A.)Dr. Cash (+A) $10,000 Cr. Notes Payable (+L) $10,000 Option B) Cr. Notes Payable (+L) $10,000 Dr. Cash (+A) $10,000 Option C) Dr. Notes Receivable (+A) $10,000 Cr. Cash (-A) $10,000 Option D) Dr. Notes Receivable (+A) $11,000 Cr. Cash (-A) $11,000 ANSWER BEFORE 11:30!!
A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that uses a 6% annual compound interest rate. The bank deducted BD15 as a commission and BD72 as a collection charge. Find the net present value and total discounts.

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O,000 per year gross. They have debt as follows: a an with $450 per month payment, a visa which quires a minimum monthly payment of $100, and ombined student loan payments totaling 350 per onth. The bank allows a 32% GDS and 40% TDS. T buse they wish to purchase has been appraised at S