Maximum loan amount, Taxation

1. (a) Give an example of a function, f(x), that has an in ection point at (1; 4).

(b) Give an example of a function, g(x), that has a local maximum at ( 3; 3) and a local minimum at (3; 3).

(c) Plot f(x) and g(x) on the same graph being sure to label the in ection point(s) and local extrema.

2. The Mendozas wish to borrow $300,000 from a bank to help nance the purhcase of a house. Their banker has o ered the following plansfor their consideration: 

(plan I) repay the loan in monthly installments over 30 years with interest on the unpaid balance charged at 6.09%/year compounded monthly;

(plan II) repay the loan in monthly installments over 15 years with interest on the unpaid balance charged at 5.76%/year compounded monthly.

(a) Compose a business letter to the Mendoza family describing each plan in detail and the impact each plan will have for the family nances. The letter should contain the following information and a full, detailed description of how each was calculated:

the monthly repayment for each plan;

the di erence in total payments made under each plan.

(b) Recall the amortization formula

1361_Maximum loan amount.png

where i is the interest charged per period, R the periodic payment on a loan, and P dollars to be amortized over n periods. Show that the amortization formula may be written as

947_Maximum loan amount1.png

(c) If they can a ord $1600/month, what is the maximum loan amount that the Mendozas may make?

Posted Date: 3/11/2013 5:38:48 AM | Location : United States







Related Discussions:- Maximum loan amount, Assignment Help, Ask Question on Maximum loan amount, Get Answer, Expert's Help, Maximum loan amount Discussions

Write discussion on Maximum loan amount
Your posts are moderated
Related Questions
Dan and Cheryl are married, file a joint return, and have no children. Dan is a pharmaceutical salesman and Cheryl is a nurse at a local hospital. Dan%u2019s SSN is 400-20-1000 and

Ken, a resident, is a handyman who contracts with people to do a variety of jobs including repairing fences, fixing household items and small painting jobs. As part of this work, K

Billsby Corporation had a tax liability for 20X7 of $20,000 based on a tax rate of 40%, but the accounting staff needs your help in determining the tax expense and deferred tax amo


28) Explain how Treasury Department Circular 230 differs from the AICPA’s Statements on Standards for Tax Services.

How to raise an invoice with WCT for Civil construction job


In May 2003, Gencorp acquired Sequa Corp.'s propulsion subsidiary ARC for $133million in cash and $11 million in transactions costs. Table below lists selected information about

An expatriation tax is a tax on somebody who gives up their citizenship. In United States, the expatriation tax provisions under Section 877 and Section 877A of the Internal Revenu

Good Health Company Inc. began business in 2007 and has operating results as listed below. In 2009 & 2010 it generated net operating losses of $75,000 and $120,000 respectively. Th