You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $25,000 annually. You own a home with a $140,000 mortgage, and you owe $14,000 on car loans, $4,800 in personal debt, and $3,500 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $7,000. Estimate your total insurance needs using the DINK method. Total insurance need

You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $25,000 annually. You own a home with a $140,000 mortgage, and you owe $14,000 on car loans, $4,800 in personal debt, and $3,500 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $7,000. Estimate your total insurance needs using the DINK method. Total insurance need

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter8: Insuring Your Life

Section: Chapter Questions

Problem 1FPE: Harvey Cook, 45, is a recently divorced father of two children, ages 10 and 7. He currently earns...

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Problem 12-9 Estimating Life Insurance Needs Using the DINK Method [LO12-2] You are a dual-income, no-kids family. You and your spouse have the following debts: Mortgage = $260,000; Auto loan = $11,500; Credit card balance = $2,250; and other debts = $6,500. Further, you estimate that your funeral will cost $6,000. Your spouse expects to continue to work after your death. Using the DINK method, what should be your need for life insurance? Answer is complete but not entirely correct. Total insurance need $ 146,125 ×
Problem 10-7 (L010.1) You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $40,000 annually. You own a home with a $100,000 mortgage, and you owe $11,000 on car loans, $2,000 in personal debt, and $3,000 in credit card loans. You have no other debt. You have no plans to increase the size of your family in the near future. You estimate that funeral expenses will be $5,000. Estimate your total insurance needs using the DINK method. Total insurance need
Problem 12-7 Calculating the Amount of Life Insurance Needed Using the Easy Method [LO12-2] Suppose that yours is a typical family. Your annual income is $55,000. Using the easy method, what should be your need for life insurance? (Do not round intermediate calculations.) Life insurance need $ 26,950
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.
46-50 When you are planning to buy a house or property mostly you will take mortgage loans. But you may think first of the finance charge or interest that will cost you to own it and you will commit to making monthly payments. Do you think that mortgage loans will be helpful or it can be a burden because of your commitment to pay the monthly payments? Why?
и mубреппath.com > Question 73 Jenelle bought a home for $300,000, paying 28% as a down payment, and financing the rest at 3.4% interest for 30 years. Round your answers to the nearest cent. How much money did Jenelle pay as a down payment? $ How much does she need to borrow to cover the rest of the house? $ There are several other costs involved in a mortgage. One cost is called "points" and is a percentage of the loan amount (before closing costs are added). If she needs to pay 0.625 points, how much is that charge? $ Jenelle also needs to prepay home owner's insurance and property taxes. If the home owner's insurance is 0.9% of the value of the home, how much does she pay for insurance? $ If the property tax rate is 0.6% of the value of the home, how much does she pay for taxes? $ In addition to those charges, she has another $2330 of closing costs. How much are her closing costs? $ Her total loan amount is the amount financed for the house, plus all of her colsing costs. What is…
Problem 7-25 Low-Income Retirement Plan Contribution Credit (LO 7.9) George and Amal file a joint return in 2021 and have AGI of $38,200. They each make a $1,600 contribution to their respective IRAS. Assuming that they are not eligible for any other credits, what is the amount of their Saver's Credit?
Friend #3 – Home Mortgage Payment – I found my dream house in St. Paul but I am not sure I can afford it? I have the $15,000 for the down payment but it is the monthly payments that I am not sure about? What will my monthly payments be? Selling price: $215,000 Down payment: $15,000 Loan: 30-year $200,000 loan at 6% A. В.
QUESTION 10 Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to cover the rest. For the home they want this will require a mortgage of $450,000 to cover the remaining amount and they’re not sure whether they could afford the monthly loan payments. The bank has offered them a mortgage interest rate of 3.25%, compounded monthly . How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? What is the total amount that would be paid to the lender after 25 years of payments? ANSWER FOR PART 1 : 2192.92 ANSWER FOR PART 2 : 657876.00 What if Aya and Sakura could only afford a monthly payment of $1800? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same? What is the total amount that would be paid to the lender over 25 years?
Problem 7.5. Fair value of annuity payments Mrs. Lata aged 35 wanted to purchase an annuity from a life insurance company The annuity would pay her Rs 70,000 until she lives. The insurance company expected that she would live for 35 more years and it would be willing to pay 8 percent on the annuity. How much should the insurance company ask Mrs. Lata to pay for the annuity?
Problem Set for Credit Card Debt MATH 113: Section 9.4a Page 2 of 2 3. Rachel is purchasing a new camera that costs $3800 for her photography business. Rachel uses a credit card that has an APR of 16.99%. a. How long will it take her to pay off the camera if she makes monthly payments of $75? b. How much will she pay in the long run for the camera if she makes monthly payments of$75?
Question 26 Gavin Marriot, 36, is a successful dentist who owns a condominium with $250,000 owing on the mortgage. He has $10,000 in RRSP contribution room and $7,500 in other savings. His marginal tax rate is 46%. Gavin asks his Advisor how he can make the best use of his $7,500 in savings. Which of the following options is Gavin's Advisor most likely to recommend? Make a lump sum payment of $7,500 on his mortgage loan. Contribute $7,500 to his RRSP. Deposit $7,500 in a non-registered mutual fund. Contribute $3,750 to his RRSP and make a lump sum payment of $3,750 on his mortgage loan.