You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $40,000 annually. You own a home with a $100,000 mortgage, and you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $5,000. Estimate your total insurance needs using the DINK method. Total insurance need

You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $40,000 annually. You own a home with a $100,000 mortgage, and you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $5,000. Estimate your total insurance needs using the DINK method. Total insurance need

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter9: Deductions: Employee And Self-employed-related Expenses

Section: Chapter Questions

Problem 19CE

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H5.
A couple in their 70s with no liens on their home would like some extra income, but don't want to make monthly loan payments. What kind of loan might a lender offer them? A- A reverse equity loan, since they are over 62 and have sufficient equity in their home B A reverse equity loan, since they are over the age of 35 C- A reverse equity loan, but the couple will need to make monthly payments D - None; a lender will probably refuse to lend to anyone over the age of 62 -
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“Suppose that your parents are willing to lend you $20,000 for part of the cost of your college education and living expenses. They want you to repay them the $20,000 without any interest, in a lump sum 15 years after you graduate, when they plan to retire and move. Meanwhile, you will be busy repaying federally guaranteed loans for the first 10 years after graduation. But you realize that you won’t be able to repay the lump sum without saving up. So you decide that you will put aside money in an interest-bearing account every month for the first five years before the payment is due. You feel comfortable with setting aside $275 a month (the amount of the payment on your college loans, which will be paid off after 10 years). How high an annual nominal rate on savings do you need to accumulate the $20,000, in 60 months, if interest is compounded monthly? Enter into a spreadsheet the values of d = 275, r = 0.05 (annual rate), and n = 60, and the savings formula with r replaced…