9Oa)Ob)Oc)Od)UChong is starting a winery business in his home town of Kelowna, British Columbia. Chong needs money to get started.He has a permanent policy on his own life with a cash surrender value (CSV) of $1 million and is considering using theCSV to secure a loan, as requested by his lender. Chong only needs to assign a portion of the policy and he isconsidering a partial collateral assignment of $500,000. Which of the statements below about Chong's partial collateralassignment is correct?To secure their interest during the term of the loan, the lender becomes owner of the policy.Chong retains ownership of the policy and can make policy withdrawals as desired.If the loan is still outstanding when Chong dies, the lender has first rights on the full death benefit.If Chong defaults on the loan while he is alive, the lender can force a surrender of the policy to recover the unpaid loanbalance.

A permanent life insurance policy is a type of life insurance that remains in effect for the…

Answered: ery business in his She town of…

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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6) Stephanie suggests to George that they can reduce the amount of interest they pay over the life of the loan by simply making his monthly repayments at the start of each month rather than at the end. Is Stephanie correct? Explain why/why not using calculations to prove your response.please Show formula, variables, calculations and a concluding statement in your response.
Julian and Julie are meeting with the Bank of Montreal. They know that the bank will be looking at their ratios and they do not feel very confident. A lot is riding on this meeting as it would determine whether they can buy the condo of their dreams or not. Calculate their Total Debt Service (TDS) ratio based on the information provided. • Julian's annual gross salary: $90,000 • Julie's annual gross salary: $91,000 Monthly mortgage payment: $2,150 • Annual property taxes: $2,400 Monthly heating: $160 • Annual condo fees $600 • Julian's monthly student loan $70 • Julie's monthly car loan $125 . Monthly furniture loan $30 . . Select one: O a. 35% O b. 20% O c. 25% O d. 22% O e. 18%
Linda is taking out an amortized loan for $91,000 to open a small business and is deciding between the offers from two lenders.She wants to know which one would be the better deal over the life of the small business loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the list of financial formulas. (a) AngeHer credit union has offered her a 8-year small business loan at an annual interest rate of 13.3%. Find the monthly payment.X(b)A savings and loan association has offered her a 9-year small business loan at an annual interest rate of 13.5 %. Find the monthly payment.Suppose Linda pays the monthly payment each month for the full term. Which lender's small business loan would have the lowest total amount to pay off, and by how much? Gredit unionThe total amount paid would be $ less than to the savings and loan association.Try againvings and loan association he total amount paid would be $less…
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $20,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $20,000 with an annual interest rate of 11% over the next 5 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract. What is the amount of payment that the woman will receive at the end of years 1 through 4? $ (Round to the nearest cent.)
This is a Debt Coverage Ratio or DCR question for part a and a CAP rate question for part b]. Wendy is going to purchase a commercial building and is working with a commercial lender at her local bank. The bank has some loan parameters that Wendy must follow. Understanding the rules will allow her to calculate her cash, income, and payment projections. The bank requires a 1.4 debt coverage ratio for her project. Wendy needs to calculate her net operating income or NOI first. The debt coverage ratio is based on this number. Then she will apply for a 20 year loan at 5% with annual payments. Information on the property includes: Gross rents- $780,000 Vacancy 5% Salaries $85,000 Other Fixed Expenses $125,000 Variable Expenses 20% of gross rents. NOI=_________________ Use the NOI and Debt Coverage requirement to calculate the answer. What is the largest annual payment the bank will allow? If Wendy had to buy the property at a 6% CAP (capitalization) rate, what is the asking price?
Please do not give solution in image format ? And Fast Answering Please And Explain Proper Step by Step.
Please answer all three subparts and don't give handwritten answer ..thanku
Kindly assist on questions below. (1) A person has wealth of $ 40000. If they have an accident they mush spend $ 30000 on car repairs. Their utility function is given by U = w1/2 where w is equal to their wealth . They do not get into an accident with 90% chance and they get into an accident with 10 % chance. What is the total fair premium for full insurance for this person. (2) Risk pooling can decrease risk if: a) Risks are independent b) risks are dependent c) enough people pool their risk d) if the amount if risk is small enough e) if people have different risk preferences
Discount loan (interest and principal at maturity). Chuck Ponzi has talked an elderly woman into loaning him $45,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $45,000 with an annual interest rate of 11% over the next 5 years. Determine the cash flow to the woman under a discount loan, in which Ponzi will have a lump-sum payment at the end of the contract. What is the amount of payment that the woman will receive at the end of years 1 through 4? $nothing (Round to the nearest cent.)
Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $300,000 Rolls-Royce Phantom. Jack currently has $50,900 that he may invest. He has found a mutual fund with an expected annual return of 4.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation.
Frank Zanca is considering three different investments that his broker has offered to him. The different cash flows are as follows: End of Year A 1 $300 B C $400 2 $300 3 $300 4 $300 $300 $600 5 $300 6 $300 $300 $300 $600 7 8 Because Frank only has enough savings for one investment, his broker has proposed alternative C to be, according to his expertise, "the best in town." However, Frank questions his broker. Calculate the present value of each investment, assuming a 15% discount rate. Which is Frank's best alternative? Select one: a. Investment A O b. Investment B c. Investment C O d. He should not invest in any of the suggested investments O e. All of the investments are equally good
Yara owns a home that was recently appraised for $181,000. The balance on the existing mortgage is $84,200. If Yara's bank is willing to loan up to 73% of the appraised value, find the potential amount of credit available on a home equity loan. O $47,930 O $61,466 O $96,800 $132,130 * O 0 o o

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