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
Assume that Zorn received only $24,000 salary during the period October 1 through December 31, 2013. What would be the consequences to Zorn, Inc.?

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 minim

The following information is available for Kessler Company after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax

presumptive tax is one way of enforcing compliance with the tax requirements.you are required to define presumptive tax and give examples of situations where presumptive tax is app

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

Bob and Carl transfer property to Stone Corporation for 90% and 10% of Stone Stock, respectively. Pursuant to a biding agreement concluded before the transfer, Bob sells half of hi

Lehman Corporation purchased a machine on January 2, 2011, for $2,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation

King Corporation, an accrual method taxpayer, reports the following results for 2014: Regular taxable income before regular tax NOL deduction $800,000 Minus: Regular tax NOL deduc

Wes and Donna were the only members of an LLC, and they fended off unwated takeover suitors with a clause in the charter that shares could change hands only with unanimous approval

1. Shortly after he retired in November 2009, Paul Martyn decided to set up a coffee retail shop in leased premises close to the Camberwell where he lived.  The main products sold