Carol Jones, a single person, has an annualincome of $32,200. The principal and interestpayment on the $25,000 loan (30 years at 8%) forher condominium is $7.34 per $1000. Annualproperty taxes are $1,200 and insurance is $280а year.Ms. Jones would like to purchase a larger unit ina new high rise, but her monthly principal andinterest will increase to $330.30, plus annualtaxes will be $2,100. Interest on the $45,000 willbe 8% as rates are lower than when shepurchased her present condominium.Given Ms. Jones' situation, would you advise herto purchase the new home? Considering theinvestment from strictly the market place aspect- are high rise condos selling in your area?

SolutionGiven thatAnnual income of carlo jones=$32,000Loan amount =$25000 30 year at 8%Annual…

Answered: Carol Jones, a single person, has an…

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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Carol Jones, a single person, has an annual income of $32,200. The principal and interest payment on the $25,000 loan (30 years at 8%) for her condominium is $7.34 per $1000. Annual property taxes are $1,200 and insurance is $280 а year.