Homework Answers
The borrowed home loan is $ 100,000
The interest deductible is $ 3000 for 6 months till 31 Dec at 6% interest
If the tax bracket is 25 % and interest deductible is $ 3000 than Finn and Inga saves tax worth 3000*25% = $ 750 on their return of income.
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5 Tax Savings. Finn and Inga just borrowed $100,000 on a interest only home equity line...
Planning #10 (similar to): Tax Savings Question Help Tax Savings. John and Cheryl just borrowed $40.900...
Planning #10 (similar to): Tax Savings Question Help Tax Savings. John and Cheryl just borrowed $40.900 on a home equity line of credit. The interest rate for the loan is 4.85% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 15% tax bracket What will be their tax savings for the first year ending December 312 (Hint assume that all of the interes paid this year is tax deductible.) Their...
The interest paid on which type of loan is not tax deductible? Multiple Choice Home equity loan interest for home impr...
The interest paid on which type of loan is not tax deductible? Multiple Choice Home equity loan interest for home improvements Credit card interest Mortgage interest to buy a home Mortgage interest to build a home Investment interest up to the amount of investment income oan Martin expects interest rates to decline over the next few months. To achieve her long-term financial goals, she will trade off liquidity for a higher return by using a: Multiple Choice regular savings account....
Jennifer has just borrowed $100,000 to buy a home on a 30-year, adjustable rate mortgage(ARM). The...
Jennifer has just borrowed $100,000 to buy a home on a 30-year, adjustable rate mortgage(ARM). The benchmark index is LIBOR which is currently at 2.5%. Her margin is 2% and the loan has caps of 1% annually, and 5% lifetime. While her initial rate should be 4.5%, the lender has granted her a "teaser" rate of 4% for the first year. Assuming that the periodic cap applies to any initial rate, including the teaser rate, if LIBOR rises 1 1/2%...
You have just obtained a personal loan under the simple interest method. You have borrowed $15,000...
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On January 1, 2019, Conjecture Inc. issued 5-year bonds with a face value of $100,000 and...
On January 1, 2019, Conjecture Inc. issued 5-year bonds with a face value of $100,000 and an annual stated interest rate of 8%. Interest payments are made semi-annually on June 30th and December 31st. The bonds were issued for $108,530, when the market rate of interest was 6%. How much interest expense will Conjecture record for the six months July 1 - December 31, 2019?
Problem 4 Today is July 1, 2000. You've just borrowed $100,000 to purchase a house. The...
Problem 4 Today is July 1, 2000. You've just borrowed $100,000 to purchase a house. The terms of the loan are 6% APR with monthly compounding. It's a standard 30 year loan, with 360 payments, which occur at the end of each month. Part (A) owe? Immediately after you make your 57th payment, how much money do you still Part (B) Immediately after you make your 359th payment, how much do you stll owe? Part (C) What proportion of the...
Karou is considering different options for financing the $15,000 balance on her planned new car purchase....
Karou is considering different options for financing the $15,000 balance on her planned new car purchase. The cheapest advertised rate among the local banks is 6.25 percent for 48-month car loan. The current rate on her revolving home equity line is 8.75 percent. Karou is in the 25 percent federal tax bracket and the 5.75 percent state tax bracket. Calculate Karou's monthly car payment using your financial calculator. Compare the payment amount if she uses the 48-month car loan through...
eBook A few years back, Dave and Jana bought a new home. They borrowed $230,415 at...
eBook A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their 25th payment, and the current balance on the loan is $208,555.87, Interest rates are at an all-time low, and Dave and Jana are thinking of refinancing to a n of-pocket costs of $2,937. The out-of-pocket costs must be paid in full at the time of refinancing Build...
Required information: - Borrowed $100,000 on 6/30/21; 5 years; 9% interest; Quarterly payments of $6282. The...
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5. Calculating Take-home Pay, and Length of Savings: Because it is such a large amount, most...
5. Calculating Take-home Pay, and Length of Savings: Because
it is such a large amount, most people, when deciding to buy a
home, need to plan ahead and start saving for the down payment.
Using the average starting salary in the career you chose after
graduation as a guideline (from #2), calculate your monthly
take-home pay; this is your net monthly pay after you have an
average of 30% taken out for income taxes.
Monthly take-home (net) pay after 30%...
Planning #10 (similar to): Tax Savings Question Help Tax Savings. John and Cheryl just borrowed $40.900 on a home equity line of credit. The interest rate for the loan is 4.85% for the entire year, and they took out the loan on May 1. John and Cheryl are in the 15% tax bracket What will be their tax savings for the first year ending December 312 (Hint assume that all of the interes paid this year is tax deductible.) Their...
On January 1, 2019, Conjecture Inc. issued 5-year bonds with a face value of $100,000 and an annual stated interest rate of 8%. Interest payments are made semi-annually on June 30th and December 31st. The bonds were issued for $108,530, when the market rate of interest was 6%. How much interest expense will Conjecture record for the six months July 1 - December 31, 2019?
Problem 4 Today is July 1, 2000. You've just borrowed $100,000 to purchase a house. The terms of the loan are 6% APR with monthly compounding. It's a standard 30 year loan, with 360 payments, which occur at the end of each month. Part (A) owe? Immediately after you make your 57th payment, how much money do you still Part (B) Immediately after you make your 359th payment, how much do you stll owe? Part (C) What proportion of the...
eBook A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their 25th payment, and the current balance on the loan is $208,555.87, Interest rates are at an all-time low, and Dave and Jana are thinking of refinancing to a n of-pocket costs of $2,937. The out-of-pocket costs must be paid in full at the time of refinancing Build...
5. Calculating Take-home Pay, and Length of Savings: Because
it is such a large amount, most people, when deciding to buy a
home, need to plan ahead and start saving for the down payment.
Using the average starting salary in the career you chose after
graduation as a guideline (from #2), calculate your monthly
take-home pay; this is your net monthly pay after you have an
average of 30% taken out for income taxes.
Monthly take-home (net) pay after 30%...
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