FIN XXXXXXXXXX, Spring 2019 Assignment IV XXXXXXXXXXDue Date: March 11, 2019 Be a Financial Planner – Continuing Case: Cory and Tisha Dumont (Page XXXXXXXXXX) · Question 3: The Dumonts’ commercial...

I need all of these assignments done. The book used to do these assignments is Personal Finance Turning money into wealth the 7th edition


FIN 3220-60, Spring 2019 Assignment IV Due Date: March 11, 2019 Be a Financial Planner – Continuing Case: Cory and Tisha Dumont (Page 280-281) · Question 3: The Dumonts’ commercial bank was recently bought by a large, out-of-state bank. Because required minimum balances and bank fees have increased, the Dumonts have considered shopping for a new bank. What factors should they consider? · Question 4: The Dumonts have asked your advice on using a CD, money market mutual fund, or asset management account for their emergency fund. What are the advantages and disadvantages of these three cash management alternatives? · Question 5: Which provides the higher after-tax yield: the Dumonts’ 1 percent bank savings account or a federal and state tax-free money market funds yielding 0.25%? The Dumonts are in the 15 percent federal marginal tax bracket. Note: · Please read the above questions carefully since they may not be exactly same as the questions in the textbook. · Only electronic copy of the assignment should be submitted via email to [email protected]. Please name your file with the title as “your last name – your first name – FIN3220 Assignment IV”. FIN 3220-60, Spring 2019 Assignment VI Due Date: March 11, 2019 Be a Financial Planner – Continuing Case: Cory and Tisha Dumont (Page 280-281) · Question 8: The Dumonts’ take-home pay (after deductions for taxes and benefits) is approximately $6,045 monthly. Current nonmortgage debt payments equal $911 (i.e., $405 auto, $100 miscellaneous credit, $196 student loan, and $201 furniture). Calculate their debt limit ratio. Is this debt limit ratio in a reasonable range and why? Assume they could purchase another auto with a $300 monthly payment. Calculate their revised debt limit ratio. Is this revised debt limit ratio in a reasonable range and why? What advice would you give the Dumonts about purchasing another vehicle. · Question 13: Cory and Tisha are convinced that “good debt” means “cheap debt.” Help them identify one or two sources of credit that would be categorized as inexpensive, more expensive, or most expensive. Note: · Please read the above questions carefully since they may not be exactly same as the questions in the textbook. · Only electronic copy of the assignment should be submitted via email to [email protected]. Please name your file with the title as “your last name – your first name – FIN3220 Assignment VI”. FIN 3220-60, Spring 2019 Assignment V Due Date: March 11, 2019 Be a Financial Planner – Continuing Case: Cory and Tisha Dumont (Page 280-281) · Question 12: What are the “five Cs” of credit? Define and explain each (if possible, define and explain each based on the information provided about the Dumont household). Note: · Please read the above questions carefully since they may not be exactly same as the questions in the textbook. · Only electronic copy of the assignment should be submitted via email to [email protected]. Please name your file with the title as “your last name – your first name – FIN3220 Assignment V”. FIN 3220-60, Spring 2019 Assignment VII Due Date: March 11, 2019 Be a Financial Planner – Continuing Case: Cory and Tisha Dumont (Page 280-281) · Question 18: Cory and Tisha found a used car that costs $12,000. They can finance through their bank for 5.75% interest for a maximum of 48 months. What is the monthly payment? The rate for new-car financing is 4.50% for 60 months or 4.35% for 48 months. If they could find a comparable priced new vehicle, what is the monthly payment if they financed the new vehicle for 48 months? · Question 19: Considering the information in Question 18, how much interest would be saved if the Dumonts financed the used vehicle for 36 months, instead of 48 months, if the interest rate remains the same at 5.75%? Steps to solve this problem:(1) find the monthly payment for financing over 36 months, then calculate the total payment over the life of the loan (36 months); (2) find the monthly payment for financing over 48 months, then calculate the total payment over the life of the loan (48 months); (3) the difference between the above two total payments is the interest saving. · Question 23: Based on their gross monthly income of $7,000 and monthly debt repayment of $911, what is the maximum mortgage amount for which Cory and Tisha could currently qualify? Monthly real estate tax (T) and homeowner’s insurance (I) are estimated at $170 per month. Calculate the mortgage amount using both the 28 percent qualification rule and the 36 percent qualification rule (Use the attached Worksheet Method 1 & Method 2; assume 30-year mortgage with 4% interest rate) · Question 24: Using information in Question 23, however, assuming that the Dumonts don’t have student loan, what is the maximum mortgage amount for which Cory and Tisha could currently qualify? Calculate the mortgage amount using both the 28 percent qualification rule and the 36 percent qualification rule (Use the attached Worksheet Method 1 & Method 2; assume 30-year mortgage with 4% interest rate) · Question 26: Given the maximum mortgage qualification amount determined in Question 23, calculate a 20% down payment. If closing costs average 5% of the cost of the house, how much will the Dumonts need on the day of closing? How does this compare with the $13,000 in the stock market index mutual fund account for their house down payment? Note: · Please read the above questions carefully since they may not be exactly same as the questions in the textbook. · Use either financial calculator or excel functions to solve Question 18 and 19. If you use financial calculator, please show your calculator inputs. If you use excel functions, please submit the excel file with excel functions included. · Only electronic copy of the assignment should be submitted via email to [email protected]. Please name your file with the title as “your last name – your first name – FIN3220 Assignment VII”.
Mar 12, 2021
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