savings account that yields 4% interest compounded monthly. What will be the account balance in 3 years? 3. You deposit $3000 into a savings account that yields 3% compounded continuously. How long will it take for your account to have a balance of $4500? Extensions: You are a financial planner. Your clients, Sally and Roberto Smith, would like to begin saving money with the long term goal of buying a house. They claim to have $7000 saved but it is not in an interest bearing account. 1.…
First, I would need the current interest rate on their savings and investment funds to figure their time value of money. I would need to know the education costs as well as in estimated annual inflation percentage rate. I would also weight the options and research low interest rate student loans versus overextending my finances. Secondly, we know the amount the medical facility costs each month, as well…
In 2008, my life changed forever. The devastation in the real estate market hurled direct consequences into my innocent 14 year old life that I never could have fathomed. I remember my father talking to my mother during dinner and telling her that their portfolio took a really big hit, and that they weren’t very liquid. Our family vacation got cancelled. I recall being particularly mad. Each year one of my siblings was allowed to invite a friend to join us on vacation. This was my year. I had no…
please refer to cell T12 SIMP’s the after tax revenue stream is $72 a month higher, this gives lenders $72 a month more revenue over 10 years to reinvest due to the fact SIMP borrowers monthly payments are composed of $100% principal oppose to 90% interest, in the case of the 30-year model. How do we quantify how much more yield SIMP would receive due to having $72 more dollars each month to reinvest over 10 years? Well one way would be to SIMPly add this amount to our present revenue…
Product Risk: A type of mortgage pipeline risk that occurs when a lender has an unusual loan in production or inventory but does not have a sale commitment at a prearranged price. Production is the process of combining various material and immaterial inputs to create an output for consumption or use. The output is a good or service which has value and garners demand. In the production lines of automobiles, the resources needed include raw materials such as steel and glass, machinery and human…
ce coverage on maintaining minimum monthly balance of Rs 100,000. Salient Features : There is no minimum balance limit for the account. Students up to age of 30 are allowed to open account in this scheme. Bank will provide free of cost insurance to student amounting RS 20,000 per month for 24 months in case of natural death and permanent total disability of parents and guardian (one person whose name has been reported ) . In case of accident ,the amount will be doubled for 24 months. BOP…
piggyback loan: Higher interest rates, fees or large balloon payments, restrictions on home equity loans, and no way to drop your payment by getting rid of PMI. First, a piggyback loan always carries a higher interest rate than a standard fixed rater mortgage. The lenders are assuming a little more risk therefore they charge higher interest rates. Sometimes the lender of the 80% will offer very competitive rates, however the second lender will often have an interest rate 3% - 4% higher than the…
The Westing House By: turtle Wexler or Savannah I was about to take a huge leap. Entering the Westing house and coming back with money was all on my mind. In my head I was thinking… where the stories that happened in this mansion true? Two dollars a minute i thought. That would be a lot if I stayed in for twenty-five minutes, that would pay for a subscription to The Wall Street Journal. If I stayed in for an hour, they would owe me $120 each!!. Thats a lot of money! I want to show Doug…
The 401(k) Temptation and Trap The 401(k) is a retirement plan established in 1978 to help workers whose companies no longer offered pensions. The idea was that workers could draw monthly allotments from the amount saved once they reached retirement age. The temptation for many people who are struggling to accumulate a savings account is to view the money sitting in a 401(k) as a "honey pot". While the IRS does have a number of provisions that allow a person to give into their temptations…
What can be done by unsecured debt consolidation loan is to consolidate all your unsecured debts and help you avoid bankruptcy. This new par can save millions of rupiah per month if you choose to use your loan to pay off existing debt, especially high-rate credit cards. Even if you do not own a home, you may qualify for a debt consolidation loan. But do not forget now you have…