Short-term and long-term liabilities, Operation Management

In addition to the car lease, Leonard and Rose each have a VISA card with an interest rate of 18.25% p.a. They currently have a balance of $1,205 and made payments of $3,537 in 2010. You suggest that they pay this off as soon as possible in order to avoid the high interest charges. Although Leonard and Rose could take out a bank loan to save interest, they are nervous that, with a zero balance on their credit card, they might run it up again. You advise them that, in this case, they should  just keep plugging away and pay off the balance as fast as possible. Rose and Leonard think they could reasonably pay it all off in 2011. They will then have this money to contribute to either non-registered savings or RESPs for their children.

Rose and Leonard bought their house at the end of March 2002, making their first bi-weekly mortgage payment in April, 2002 (making 20 payments the first year). The house cost $280,000 and they put 25% down. The interest rate has always been 6.5%. They renewed for a 5-year term  in March 2007. The mortgage has been amortized over 25 years and they make end-of-period mortgage payments. The couple expects to pay off their mortgage in full before they retire. They have joint creditor life insurance on their mortgage, which is $525 p.a.

Posted Date: 3/1/2013 7:11:24 AM | Location : United States







Related Discussions:- Short-term and long-term liabilities, Assignment Help, Ask Question on Short-term and long-term liabilities, Get Answer, Expert's Help, Short-term and long-term liabilities Discussions

Write discussion on Short-term and long-term liabilities
Your posts are moderated
Related Questions
Identify and post 8 ways that technology helps prevent or solve crimes and 8 ways that technology has made crimes easier for criminals.

A farmer has 10 acres to plant in wheat and barley. He has to plant at least 7 acres. However, he has only $1200 to spend and each acre of wheat costs $200 to plant and each acre o

Choose an Operations Management problem relating to an organisation of your choice and undertake a critical review.

In a rectangular game, pay-off matrix of player A is as follows: Player B B1 B2 Player A A1 A2 i) Solve the game. ii) Write down the pay-off matrix of B and then, solve the g

From the case study, determine these factors: (a) people or institution doing the dumping, (b) reasons for dumping, (c) places where the dumping takes place, or (d) the product, in


Define the temporal flexibility workforce. Temporal flexibility can be accomplished by varying the hours worked through employees within response to changes into demand for

All of the following factor have influenced the increased reliance upon project management in recent years EXCEPT: A. Rapid growth and change in the information technology and t

What are programmed decisions? Decisions made in accordance with several habit, rule or procedure are termed as Programmed Decisions.

What are the pros and cons of flexible schedules from an employee's perspective?