EBK PERSONAL FINANCE
EBK PERSONAL FINANCE
7th Edition
ISBN: 9780135165522
Author: Madura
Publisher: YUZU
Question
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Chapter 10, Problem 1RQ
Summary Introduction

To discuss: The first task that has to be considered while purchasing a house, the importance of this task and the way the broker can help person X.

Expert Solution & Answer
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Explanation of Solution

The first thing that has to be considered at the time of purchasing a house is the comparison of the home with the homes in the current location. This step is helpful in measuring the cost of purchasing a house and the cost of buying it against the cost for renting. It is significant because it is helpful in determining the typical range of price and features of the home in current location. A real estate broker is helpful in assessing the homes and offering suggestions that are helpful in satisfying the preference of the customers.

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The maturity value of an $35,000 non-interest-bearing, simple discount 4%, 120-day note is:
Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $18,905 at 10% for 4 years. Use ordinary interest as needed. Calculate the simple interest note proceeds.   Calculate the simple discount note proceeds.
What you're solving for    Solving for maturity value, discount period, bank discount, and proceeds of a note.        What's given in the problem    Face value: $55300 Rate of interest: 10% Length of note:   95 days Date of note: August 23rd Date note discounted: September 18th   Bank discount rate:9 percent
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