Jacob is a 23-year-old college graduate from Sheridan College with an Honours Bachelor of Business Administration (Finance). He is living at home and has a short-term contract with a financial company thát wil end in 6 months. He was able to pay off all his school loans in the first 6 months of the contract and now saves about $3500 every month. He would like to move out and buy himself a car. Discuss factors that he should consider while planning this change in his life and how his financial stability plays a role.
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- Mike Smith just turned 16 years old. He wishes to buy a used car in one year, and he is willing to spend $5,000. He plans to work part-time and put all his monthly earnings into a bank account that will pay 0.5% interest per month. How much must he save per month to be able to purchase the car in one year?Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time of year again when Jamie Lee must file her annual federal income taxes. Last year, she received an increase in salary from the bakery, which brought her gross monthly earnings to $3,000, and also opened up an IRA, to which she contributed $400 last year. Her savings accounts earn 2% interest per year, and she also had received an unexpected $1,950 gift from her great aunt. Jamie was also lucky enough last year to win a raffle prize of $2,900, most of which was deposited into her regular savings account after paying off her credit card balance. Estimate Jamie Lee's current tax liability by completing the form below. Use standard deduction ($6,300) and personal exemption ($4,050). Each answer must have a value for the assignment to be complete. Enter "0" for any unused categories. Use 2021 tax rates. I put in these values, but I feel that i am…Brandon just graduated from college. Unfortunately, Brandon’s education was fairly costly; the student loans that he took out to pay for his education total $95,000. The provisions of the student loans require Brandon to pay interest equal to the prime rate, which is 8 percent, plus a 1 percent margin—that is, the interest rate on the loans is 9 percent. Payments will be made monthly, and the loans must be repaid within 20 years. Brandon wants to determine how he is going to repay his student loans. a. If Brandon decides to repay the loans over the maximum period—that is, 20 years—how much must he pay each month? b. If Brandon wants to repay the loans in 10 years, how much must he pay each month? c. If Brandon pays $985 per month, how long will it take him to repay the loans?
- 1. Your sister is an incoming college freshman taking up a four-year course. Suppose that she wants to purchase a car immediately after graduating from college which will cost P750,000. How much should she invest at the end of every year in an investment fund that earns 9% annually to have enough money to buy the car upon graduation? 2. Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in order to purchase a vehicle. He negotiated for the stated rate of the loan at 6% wherein the current market rate is 10%.Se Ri Pak, age 23, recently graduated with her bachelor's degree in library and information sciences. She is about to take her first professional position as an archivist with a civil engineering firm in a rapidly expanding area in the U.S. Southwest. While in school, Se Ri worked part time, earning about $8000 per year. For the past two years, she has managed to put $1000 each year into an individual retirement account (IRA), Se Ri owes $15,000 in student loans on which she is obliged now to begin making payments. Her new job will pay $45,000. Se Ri may begin participating in her employer's 401(k) retirement plan immediately, and she can contribute up to 6 percent of her salary to the plan. Her employer will contribute 1/2 of 1 percent for every 1 percent that Se Ri contributes. What do you recommend to Se Ri on the importance of personal finance regarding: 3. Factoring the current state of the economy into her personal financial planning?Keith Stone has a 10-year-old daughter, Kate, who will be entering college in 8 years. Keith estimates college costs to be $16,000, $17,000, $18,000, and $19,000 payable at the beginning of each of Kate's four years in college. How much must Keith save each year (assume end-of-year payments) for each of the next 8 years to have enough savings to pay for Kate's education? Assume Keith can earn 9% on his savings.
- At the end of her first year of university, Sandra Robinson decided that she should start a business to help finance her education, so she set up her own courier service. She invested savings of $2,100 in the company, which she called Oriole Ltd. In addition, her parents lent the company $3,800 to help it get started. Since this was a business venture, Sandra insisted on paying interest on this loan, and her parents agreed to charge a rate of 6% per year. Sandra then negotiated the purchase of a used car for the business for $8,500. The company made a down payment of $2,300 on the car and financed the remainder ofthe purchase price at an interest rate of 9% per year. Due to all ofthe kilometres that would be put on the car while it was used in the courier business, Sandra estimated that the car could be sold at the end ofthe summer for $7,000. Oriole began operations on May 1 and continued until August 31.Although Sandra did not keep any formal accounting records, at the end ofthe…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.Mr. Smith has had a very good year. It is early November, and he wants to ensure he sets enough money aside to pay his taxes next April. He has outlined his anticipated income for tax season and some of his plans going forward. Mr. Smith works several jobs, and he also has some investments. In his normal job as a general contractor he made $70,000 last year with business deductions of $13,000. He also works at a restaurant as a cook in order to learn more about that business. He made $20,000 last year at that job. He has accumulated an enormous amount in property investments. His properties are now worth nearly $500,000 (an increase of $100,000 from last year). He is still paying off many of these properties and payed roughly $30,000 in interest last year (a tax deduction). Since he did not sell any of his property, we will assume that he does not need to pay taxes on its increase in value. We will also assume that the standard deduction is $14,000. We also assume that Mr. Smith has no…