User Account

All Pages

Discuss the distributions of principal

Assignment Help Finance Basics
Reference no: EM131015750

The scenario is designed to help you determine and evaluate the payment amount of a car loan and a mortgage, based on the assumption that your household income is $36,000 per year or $3,000 per month.
Based on your income, you may spend 28% of your monthly income on housing, and 10% on a car loan. You are to put a 3% down payment on the house and a 10% down payment on the car.

Required:

Using Microsoft Excel, address the following issues:

1. What is the maximum car payment and mortgage payment you can afford with the following conditions: your monthly household income, 10% for the car payment, and 28% for the mortgage payments?

2. Assume a 10% down payment on the car and a 3% down payment on the house. Also, assume that you can get financing for the car at 7% for 60 months, and the house can be financed at 5% for 30 years. How much could you spend on the car and the house? You must submit your calculations in a Microsoft Excel document showing how answers were reached.

3. Create a complete amortization schedule for the car, using the information in questions 1 and 2.

4. Discuss the distributions of principal, interest and the balance over the life of the loan.

Reference no: EM131015750

Questions Cloud

What is the wavelength in nanometers : A source of green light has a frequency of 6.2 x 1014 Hz. What is the wavelength in nanometers (nm) and in
Highly coupled module difficult to unit test : Why is a highly coupled module difficult to unit test?
What are the wavelengths of the photons it can emit : Electrons in hydrogen atoms absorb photons and jump to the third excited state (n=4). What are the probable jumps these can make before all are back to ground state? Also, what are the wavelengths of the photons it can emit? Looking for accuracy a..
Netstack college has received a grant to wire : Netstack College has received a grant to wire all of its six buildings for 10/100 Ethernet. Four of the buildings contain classrooms and laboratories and will need to support 250 network connections each. One building is for administration and will n..
Discuss the distributions of principal : Create a complete amortization schedule for the car, using the information in questions 1 and 2.
How much work does the elevator do : An elevator is able to raise 9,800 N to a height of 37 m in 14 s. How much work does the elevator do? What is the elevator's power output?
Explain the purpose of maintenance intervals : Explain the purpose of maintenance intervals. Describe the objectives of an airline maintenance program.  Compare and contrast formal and informal training methods
Calculate the present value of stock : Calculate the present value of this stock. What will be the new price of this stock if the discount rate rises to 12%? What will be the new price of this stock if the discount rate falls to 10%?
New degree of operating leverage for output levels : The operating cash flow is $58,000 in this case. Ignore the effect of taxes. What will be the new degree of operating leverage for output levels of 16,400 units and 14,400 units? Please show steps.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the percentage change of the euro

Three years ago the us dollars equivalent of a foreign currency was $1.2167? today, the us dollars equivlent of a foregin currency is$1.3310. determine the percentage change of the euro between the two year dates.

  What annual contributions to retirement fund are required

What annual contributions to  retirement fund are required for Una to achieve her objective and sleep well at night?

  According to this article what is the interdependency

the good news is gamble believes china will continue to buy u.s. treasuries which should come as a relief to those

  Cash flows from operating activities section

Dan consider to fund his individual retirement account with the maximum contribution of 2,000 dollar at the end of each year for the next ten years.

  Del mare inc earned net income of 210000 during the year

del mare inc. earned net income of 210000 during the year ended december 31 2012. on december 15 2012 del mare inc.

  What is the operating cash flow of the project

The company has a marginal tax rate of 35%. What is the operating cash flow of the project using the tax shield approach?

  Deficit balance of payments

Your company, a leading farm equipment manufacturing multinational, has a production facility in South Korea to serve the East Asian countries. For the last two years the South Korean operation has been running a deficit balance of payments situat..

  Should ccc take the discount

The supplier is now offering a quantity discount of $0.03 per gallon if CCC orders 10,000 gallons at a time. Should CCC take the discount?

  Determine the discounted payback period

The local hospital has just implemented a totally automated switchboard that cost $205,000 to install. The switchboard replaced four operators who were paid $15K annually.

  Assuming that sales are the only source of cash inflows and

a firm has actual sales of 65000 in april and 60000 in may. it expects sales of 70000 in june and 100000 in july and in

  How does the occupational safety and health administration

How does the Occupational Safety and Health Administration (OSHA) encourage organizations to adopt ergonomic job design?

  You own 1000 shares of xyz and have purchased ten

you own 1000 shares of xyz and have purchased ten protective put contracts. the puts have a delta of -0.317.a what is

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd