With regard to the loan for a down payment on your mortgage

Reference no: EM13597379

You were recently admitted to college, and your Aunt Tillie has agreed to fund the tuition for your education. The admissions representative at your college says that tuition might rise approximately 5 percent per year. Aunt Tillie has agreed to deposit a lump sum today that will cover your tuition for four years, but she needs to know the amount of the initial deposit.

Your aunt is no longer able to take care of herself, so she also wants to set aside a lump sum of money to pay her rent in an assisted-living facility for the next three years. The facility has agreed not to raise her rent, if she signs a three year lease upfront.

It's now four years later, and thanks to your aunt's generosity, you have graduated from college. She has offered to lend you the money to buy your first, new car. You are interested in calculating the payment amount on a $35,000 car loan at 6 percent for five years. She has also agreed to accept five annual payments instead of monthly payments.

It seems there's no end to Aunt Tillie's generosity. She has now agreed to loan you $10,000 for the down payment on a home. You have decided to structure the loan, so that the payment amount remains constant through the term of the contract and you can budget for a consistent loan payment each month.

With regard to the loan for a down payment on your mortgage, what drawback exists with the loan you want compared to a loan in which payments&#-96;decrease through the term of the loan?

Reference no: EM13597379

Questions Cloud

When deciding whether to make or buy the component what : iwasaki inc. is considering whether to continue to make a component or to buy it from an outside supplier. the company

A company issues 20000000 78 20-year bonds to yield 8 on : a company issues 20000000 7.8 20-year bonds to yield 8 on january 1 2010. interest is paid on june 30 and december 31.

You have just been hired as a new management trainee by : you have just been hired as a new management trainee by earrings unlimited a distributor of earrings to various retail

A company issues 5000000 78 20-year bonds to yield 8 on : a company issues 5000000 7.8 20-year bonds to yield 8 on january 1 2010. interest is paid on june 30 and dec 31. the

With regard to the loan for a down payment on your mortgage : you were recently admitted to college and your aunt tillie has agreed to fund the tuition for your education. the

By how much will oxford engineerings total profits change : oxford engineering manufactures small engines. the engines are sold to manufacturers who install them in such products

I the gain is from the portfolio is the 10 added to each : if the gain is from the portfolio is the 10 added to each amount on the balance sheet? how is this reported on the

Cablevision will incur additional operating costs for : the city of mirada wants to offer cable television to its residents in 2012. the city has approached a company called

If department k had 2500 units 45 completed in process at : if department k had 2500 units 45 completed in process at the beginning of the period 15000 units were completed during

User Account

All Pages