How much does your payment go down in the better option

Assignment Help Financial Management

Reference no: EM13928086

You buy a house for $150,000 using a 30-year mortgage at 4.5% interest to be paid monthly.1. What is your payment? 3. Your generous parents agree to give you $10,000 toward your home 4.They offer either to make a down payment (lessening the principal amount) or paying off the final $10,000. Which do you prefer (calculate all three options) How much does your payment go down in the better option? How much do you save overall?

Reference no: EM13928086

Questions Cloud

Where is your company within the business life cycle : Using HP Ennterrpise service as the company as a reference, describe your company's sector and industry. In what sector do you work and what industry does it operate? In what stage of the business cycle does your industry or sector exist?

Low-cost-carriers on routes from dallas : Between 1995 and 1997, American Airlines competed with several low-cost-carriers on routes from Dallas/Fort Worth. The US Department of Justice sued alleging predatory pricing.

Define low risk tolerance and describe two investment option : Jaia wants to begin investing a portion of her income. She takes an online investment options quiz, which concludes that she has a low risk tolerance. Define low risk tolerance and describe two investment options that would suit Jaia's risk tolera..

Characteristics of servant leadership : Laub argues that a servant organization "is one in which the characteristics of servant leadership are displayed through the organizational culture and practiced by the leadership and the workforce"

How much does your payment go down in the better option : You buy a house for $150,000 using a 30-year mortgage at 4.5% interest to be paid monthly.1. What is your payment? 3. Your generous parents agree to give you $10,000 toward your home 4.They offer either to make a down payment (lessening the principal..

How much money would be in a savings count : Calculate the present worth in year 0 of the series of disbursements and determine the value in year 8 that is equivalent to the cash flow stated.

What are the total variable costs of the project : A firm is reviewing a project with labor cost of $6.20 per unit; raw materials cost of $22.45 a unit, and fixed costs of $11,000 a month. Sales are projected at 8,200 units over the 3-month life of the project. What are the total variable costs of th..

What is the cost of external common equity : Jiffy Co. expects to pay a dividend of $1.00 per share in one year. The current price of Jiffy common stock is $45 per share. Flotation costs are $2.50 per share when Jiffy issues new stock. Jiffy Co.’s long-term growth in dividends is projected to b..

How can servant leadership transform boards : How can servant leadership transform boards and be a transformational force in society

User Account

All Pages