My spreadsheet Essay example

1379 WordsNov 12, 20146 Pages
Time Value of Money Problem Assignment – Week 3 Prepare solutions to the following problems and submit them as instructed by your section instructor. Show all calculations, or identify the sequence of steps and buttons to your financial calculator, to support the solutions you submit. John is purchasing a house for $500,000. He plans to make a down payment of $100,000 and take out a 30-year mortgage for $400,000. If the interest rate on the house is 5.5 per cent per year, how much will his monthly payment be for principal and interest.If the interest rate is the same, how much would his monthly payment for principal and interest be if he took out a 15-year mortgage? How much interest will John save in total with the 15-year mortgage?…show more content…
But insurance proceeds can go toward a number of financial obligations. Check out the reasons you may want to consider purchasing life insurance. No. 1: Income replacement If you are a breadwinner in your home, insurance can help pay the bills or offer savings potential when your income is no longer coming in. No. 2: Final expenses With funeral and burial costs totaling more than $10,000, the death of a love one can leave quite a financial burden. Life insurance can help subsidize or cover these and other medical costs. No. 3: Estate liquidity When an estate is inherited, there are many taxes your beneficiary will have to cover. From paying income taxes to federal estate and state inheritance taxes, insurance policies can provide some help. No. 4: Locking in a low premium Premiums increase as people age. To optimize benefits, buying life insurance at a young age can lock in a low premium. No. 5: Transfer family wealth Life insurance policies can allow you to leave more money to your family as part of your estate. No. 6: Build cash value Whole or universal life policies offer a tax-advantaged way to build cash value. No. 7: Cover debts A life insurance policy can help pay off a mortgage loan so beneficiaries can continue to live in the home or to remove the immediate need to sell it. Debt can be inherited, and then follow
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