25 Aug A young couple just graduated from college. Based on house
A young couple just graduated from college. Based on house prices they received from a local realtor, they determined that the home they needed currently costs around $178,000 which includes 2% closing costs. To avoid paying Private Mortgage Insurance, John and Joan need to make a down payment of 20%. Since they are saving for the potential purchase, it will be five years before they buy the home. This gives them time to save for the down payment, moving, and furniture costs, which they estimate will be 10% more than the required down payment. They also expect home prices in Plano to continue to increase each year at 2.5% per annum rate as presented by their realtor.
John, being the finance graduate, wanted to adequately prepare for their future purchase and told Joan that he would take all this information and present an overview of how much would be required once their estimated purchase date became a reality. In addition, John would show how much money they needed to save each month in their house investment account at E-Trade, which averages 5% annual return.
Tasks:
Write a 2–3-page paper where you answer the questions above. Make sure you identify the question and then respond showing all calculations using math or Excel functions.
1. What is the estimated purchase price of the home in 5 years?
2. How much would need to be saved for the down payment?
3. How much would need to be saved for closing, moving, and furniture costs?
4. Considering that they have $10,000 already saved (half of which was provided by Joan’s parents as a wedding gift), how much money do they need to save each month to reach their goal?
5. Suppose John could change investment plans at E-Trade and earn an additional 1.5% per annum without additional risk, how much money do they need to save each month to reach their goal? How much in investment dollars would they save by increasing their investment percentage?
Submission Details:
If you use Microsoft Excel, please attach a copy of your worksheet so your instructor can review the work. In addition, explain the theory used in solving this case using no less than 2 outside references. Apply APA stan
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.