illiam currently owes $14,500 on his credit cards and is having difficulty keeping up with his minimum payments. He has missed multiple payments and is currently paying a 29.99 percent annual percentage rate. He and his wife possess a great home that has a value of $40,000. They have $7,500 in a certificate of deposit earning 4% annual percentage rate. He has come to you weeping, seeking advice. What advice would you give him?

illiam currently owes $14,500 on his credit cards and is having difficulty keeping up with his minimum payments. He has missed multiple payments and is currently paying a 29.99 percent annual percentage rate. He and his wife possess a great home that has a value of $40,000. They have $7,500 in a certificate of deposit earning 4% annual percentage rate. He has come to you weeping, seeking advice. What advice would you give him?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 19DQ

See similar textbooks

Similar questions

Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?
William currently owes $14,500 on his credit cards and is having difficulty keeping up with his minimum payments. He has missed multiple payments and is currently paying a 29.99% annual percentage rate. He and his wife possess a great home that has a value of $40,000. They have $7,500 in a certificate of deposit earning 4% annual percentage rate. He has come to you weeping, seeking advice. using the point that given give him advice? A) Seek out a non-profit credit counseling company. B) Cash out his CD and pay down his credit cards. C) Become a convenience user, and maintain just one credit card. D) Take out an equity loan on the house
Due to poor spending habits, Ricky has accumulated $10,000 in credit card debt. He has missed several payments and now the annual interest rate on the card is 18.95 percent! If he pays $175 per month on the card, how long will it take Ricky to pay off the card?
that explains why Tim does or does not have enough money to pay $200 each month on his credit card. If he does have enough, give him some advice as to whether or not paying $200 each month on his credit card is a good idea. If he does not have enough, give him some advice about what he should do instead. Assume all of his taxes And expenses are as listed in #1-3, and assume that he is 20 years old and is wanting to retire at age 65. Tim will pay 5,812.5 for federal taxes 2,544.8 is the amount Tim takes home each month. Total monthly expenses= $2,15
Justin Granovsky, an assistant manager at a small retail shop in Morgantown, West Virginia, has an unusual amount of debt. He owes $5,400 to one bank, $1,800 to a clothing store, $2,700 to his credit union, and several hundred dollars to other stores and individuals. Justin is paying more than $460 per month on the three major obligations to pay them off when due in two years. He realized that his take-home pay of slightly more than $3,100 per month did not leave him with much excess cash. Justin discussed a different way of handling his major payments with his bank’s loan of-ficer. The officer suggested that Justin pool all of his debts and take out an $11,000 debt-consolidation loan for seven years at 14 percent interest. As a result, he would pay only $250 per month for all his debts. Justin seemed ecstatic over the idea. (a) Is Justin’s enthusiasm over the idea of a debt-consolidation loan justified? Why or why not? (b) Why can the bank offer such a “good deal” to Justin?…
Harvey Cook, 45, is a recently divorced father of two children, ages 10 and 7. He currently earns $95,000 a year as an operations manager for a utility company. The divorce settlement requires him to pay $1,500 a month in child support and $400 a month in alimony to his ex-wife. Harvey is now renting an apartment, and the divorce settlement left him with about $100,000 in savings and retirement benefits. His employer provides a $75,000 life insurance policy. Harvey’s ex-wife is currently the beneficiary listed on the policy. What advice would you give to Harvey? What factors should he consider in deciding whether to buy additional life insurance at this point in his life? If he does need additional life insurance, what type of policy or policies should he buy? Use Worksheet 8.1 to help answer these questions for Harvey.
Kevin Jones, of Elon, North Carolina, is single and recently graduated from law school. He is employed and earns $9,100 per month, an awesome salary for someone only 26 years old. He also has $1,700 withheld for federal income tax, $520 for state income taxes, $680 for Medicare and Social Security taxes, and $240 for health insurance every month. Kevin has outstanding student loans of almost $80,000 on which he pays about $950 per month and a 0% loan on an auto loan payment of $300 on a Ford Fusion Hybrid he purchased new during law school. He is considering taking out a loan to buy a Kawasaki motorcycle. 1. What is Kevin's debt payments-to-disposable income ratio? Round your answer to two decimal places.
Cassidy has recently begun keeping her spending under control, but she still cannot fully pay off her credit card. She maintains an average monthly balance of about $1200, and her card charges a 21.6% annual interest rate, which it bills at a rate of 1.8% per month. How much is she spending on credit card interest per year?
Jessica is single and owns her own home. She makes $120,000 per year from her job and has no other income. She has a $300,000.00 mortgage on her home with monthly payments of $1,320, annual taxes of $3,600, heating costs of $100 per month, electricity costs of $150 per month, internet costs of $80 per month and annual home insurance of $600.00. Jessica pays $450.00 per month to lease her car and has one credit card with a limit of $10,000.00 and a current balance of $500.00. Calculate Jessica’s Gross Debt Service Ratio. A. 17.7% B. 20.0% C. 17.2% D. 29.5%
Five years ago, alex loaned his son Liam $20,000 to start a business. A note was executed with an interest rate of 8%, which is the Federal rate. The note required monthly payments of the interest with the $20,000 due at the end of 10 years. Liam always made the interest payments until last year. During the current year, Liam notified his father that he was bankrupt and would not be able to repay the $20,000 or the accrued interest of $1,800. Tom is an accrual basis taxpayer whose only income is salary and interest income. The proper treatment for the nonpayment of the note is: a.$3,000 deduction. b.$20,000 deduction. c.No deduction. d.$21,800 deduction.
Mitch and Bill are both age 75. When Mitch was years old, he began depositing $1000 per year into a savings account. He made deposits for the first 10 years, at which point he was forced to stop making deposits. However, he left his money in the account, where it continued to earn interest for the next 41 years. Bill didn't start saving until he was 46 years old, but for the next 29 years he made annual deposits How much money does Mitch have in his account at age 75? How much money does Bill have in his account at age 75? Compare the amounts of money that Mitch and Bill deposit into their accounts
Amy makes her first $15,000 payment into a conservative savings plan, earning 8% per year into her savings account when she is 28 years old. After the 10th payment, Amy makes no additional payments nor does she withdraw any money from the account. One of Amy's friends, Frank, starts a savings plan that is identical to Amy's when he is 38 years old (Frank's account also earns 8% per year). He continues making $15,000 annual payments until he is 60 years old. If both Amy and Frank retire when they are 60 years old, who will have more money in their savings plan at that time?