Ten years ago, Sarah and Ben bought a house in Cambridge, Ontario for $600,000. They made a down payment of $50,000 and took out a mortgage to cover the remainin $550,000. They have now paid $100,000 towards the mortgage principal. How much equity do they have in their home? O a. $50,000 O b. $150,000 O c. $550,000 O d. $450,000
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- Question 6. One day, a letter arrives in your mailbox. The letter comes from a trusted attorney firm, indicating that you have inherited $500,000 USD from a long lost relative, and that such amount has been accumulated over the last 50 years thanks to compound interest. You also know from family hearsay that the initial amount was 50 times smaller than the current amount. What was the original interest rate?」и mубреппath.com > Question 73 Jenelle bought a home for $300,000, paying 28% as a down payment, and financing the rest at 3.4% interest for 30 years. Round your answers to the nearest cent. How much money did Jenelle pay as a down payment? $ How much does she need to borrow to cover the rest of the house? $ There are several other costs involved in a mortgage. One cost is called "points" and is a percentage of the loan amount (before closing costs are added). If she needs to pay 0.625 points, how much is that charge? $ Jenelle also needs to prepay home owner's insurance and property taxes. If the home owner's insurance is 0.9% of the value of the home, how much does she pay for insurance? $ If the property tax rate is 0.6% of the value of the home, how much does she pay for taxes? $ In addition to those charges, she has another $2330 of closing costs. How much are her closing costs? $ Her total loan amount is the amount financed for the house, plus all of her colsing costs. What is…Question 6. One day, a letter arrives in your mailbox. The letter comes from a trusted attorney firm, indicating that you have inherited money from a long lost relative, and that such amount has been accumulated over the last 50 years thanks to compound interest at 9.5% per year. You also know from family hearsay that the initial amount was $100,000.00. What is the amount you should expect to have inherited?
- QUESTION 1 Raj (aged 33) and his wife, Anita (aged 30), have just purchased a new condominium in Bandar Sunway for RM550,OOO. They plan to take an 80% mortgage loan of RM440,OOO for the next 35 years. Raj has the following assets: a Nissan Cefiro worth RM65,OOO, stocks on Bursa Malaysia worth RM180,OOO, group insurance by his employer worth RM400,OOO and personal insurance with a face amount of RM250,OOO. He has a hire purchase loan on the Nissan Cefiro amounting to RM40,OOO. Should he pre-decease Anita, Raj plans to provide RM36,OOO per annum for Anita till she reaches age 70. He would also like to create an Emergency Buffer fund of RM50,OOO and Final Expenses fund of RM35,OOO. Using the Capital Liquidation method, compute the amount of additional life insurance that Raj needs to purchase. Assume a discount rate of 4% per annum and that income is received at the end of the period. In the example above; as life mortality is uncertain, Raj would like to provide for his wife, Anita, an…_ 12. Five years after buying their first home, Scott and Mia's mortgage came up for renewal. Interest rates have dropped from 9.5% per year to 6.25% per year. They owe $186 000. Determine the monthly payment for a 15-year amortization period at the new interest rate. a. $1097.92 b. $1586.72 c. $1305.00 d. $3216.33Question 4 of 9 Charles invested $210,000 to purchase a home. After 14 years, he sold the home for $270,000. Calculate the effective interest rate earned on this investment. % Round to four decimal places
- QUESTION 5 Jill buys a house for $100,000 with no mortgage. Jill's buying costs were 5% of the house price. Jill lives there for exactly 30 years and sells it. Suppose the price of Jill's house grows 4.5% per year (compounded annually) and selling expenses are 8% of the sales price. Suppose Jill's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the same house. What is Jill's annual IRR from owning net of renting? O A. 4.33% O B. 4.50% OC. 4.04% OD.4.21%Question 4 Anne Murray is planning to buy a rental property, in addition to the family home she and Henry own. She is considering a property in Bristol costing £210,000. She has savings of £85,000 which she will use as a deposit but will need to borrow the remaining amount for the purchase. She has had a fixed-rate mortgage agreed in principle by Royal East Bank, for which she will be charged 4.75% interest. She wants to know what income she might expect to get on her investment. Local agents have estimated that the monthly rent may be £1,450 per month, with agent’s fees for managing the property being charged at 5% of the rent. Provide Anne with an estimate of the relevant costs of renting the property and the net rental income that she might expect to get. Anne has estimates for some of the other costs she will incur as follows: Repairs and maintenance per year £700 Property insurance per year £395 Mortgage arrangement fee £1950…Q2. Your grandmother deposited $10,000 in an investment account on the day you were born to help pay the tuition when you go to college. If the account was worth $50,000 seventeen years after she made the deposit, what was the rate of return on the account?
- 4 How much should you invest today at A% to accumulate $X in Y years? X= Y= A= $930,000 31 years 12% A= B= C= D= 5 Margo paid $A per month for B years to pay off a mortgage on her house. If her down payment was $C and interest rate was D% compounded monthly, what was the purchase price of the house? Page 2 $550 Try Again 28 years $5,200 6% Try AgainO B. $82,500.00 OC. $7,000.00 OD.$5,500.00 QUESTION 18 Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equal to the annual rent she would have paid to live in the same house. The house price grows 4.5% annually (compounded annually). Lucy will sell the house in one year. What is Lucy's annualized IRR? Click Save and Submit to save and submit. Click Save All Answers to save all answers.13 years ago, Sallie invested \$23{,}000.00$23,000.00 into a savings account. She now has \$33{,}091.00$33,091.00. What simple interest rate was her savings account earning? Assume the interest rate has not changed since the account was opened.
