Assuming the interest rates are roughly the same, would you prefer to financeyour new company by getting cash advances on your credit cards or by taking out a second mortgage on your house? Why?
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A: A) Computation:
Assuming the interest rates are roughly the same, would you prefer to finance
your new company by getting cash advances on your credit cards or by taking out a second mortgage on your house? Why?
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- What Percentage of down- payment do you have to give to the bank when buying a mortgage?What happens to the interest if I pay more than my payment amount on a car or home loan? What happens to the amount that you pay overall then?If you are an investor, you will put a sum amount in a bank account and will keep on adding that amount into that account until you want. Once you get to retire from your job you can start getting that amount in the form of constant or variable payouts. This amount considered as: A. Annuity B. Retirement planning C. Accumulate interest
- After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 8 percent compounded or from a bank at 9 percent compounded . Which alternative is more attractive?Suppose your bank’s loan officer tells you that if you take out a mortgage (i.e., you borrow money to buy a house), you will be permitted to borrow no more than 80% of the value of the house. Describe this transaction using the terminology of short-sales.Adapting to a low-interest-rate environment. A retired couple has expressed concern about the really low interest rates theyre earning on their savings. Theyve been approached by an adviser who says he has a sure-fire way to get them higher returns. What would you tell this retired couple about a low-interest-rate environment, and how would you recommend them to view the advisers new prospective investments?
- How is a home mortgage an example of Time Value of Money? What would you expect the impact of varying terms (years needed to pay off the loan) and rates to be using TVM rules? Why do homeowners sometimes refinance their mortgages?Discuss mortgage loans in terms of the time value of money and loan amortization. What important points should every homeowner know about how mortgages work? (Hint: Think about taxes and getting the mortgage paid off. Please explain this as simply as possible to me.If you were a wise credit card user, under which of the following conditions would you consider using a credit card to finance an expensive purchase? a. If I haven't reached my credit limit and I really want to item b.If I believe my money situation will be better (for example, a better-paying job) in the future than it is now. c.If I have the money to pay for the item in my bank account and plan to immediately pay the balance in full. d. If my card has good rewards on it.
- Suppose that you have the capacity to pay, would you rather borrow a loan that is amortized monthly or one that is amotized quarterly? what are your considerations when availing a loan (qualitative or quantitative) discuss.the concept "pay yourself first". With this in mind, what is your advice to someone on paying off credit card debt and investing for their retirement? Do you feel as though they should pay off all credit card debt before investing for their retirement or is it best to start investing for retirement as soon as possible? Why? * 350 word minimumBuying a home can be considered part of retirement planning because: a) If you have a fixed mortgage, your payments will get smaller in terms of cost because of inflation. b) If you pay it off before you retire, your living expenses are significantly lower c) A home is a store of wealth d) All of these statements are true.
