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- Hi I have a question regarding Austrlian Retirement and Financial Planning. In this example, the couple are retired and one of them is ill and looking for a retirement home, the home is going to cost $450,000 deposit. Neither of the couple work and draw 50,000 from their super in order to stay afloat. They have 20,000 and 562,000 in super combined, have a 900,000 dollar home. They also have 10,000 worth of home contents, a 15,000 dollar vehicle, and 55,000 cash in the bank. It is important to note they have 0 debt and everything is fully paid off. Neither of them have ever received pension money or government support. Myrtle wishes to put bob in an aged care facility, and when that is done she wants to return to work part time. 1. How will Myrtle's income be funded of $40,000 per annum be financed now, in the future and when she retires in 10 years time?Your parents hope to sell their large home and net $380,000 and then retire to a nice Florida community that is valued at $150,000. After they sell the property, they plan to invest the $230,000 in equity and earn a 4 percent after-tax return. Approximately how much will this nest egg be worth in 5 years when they retire? Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. Type your response SubmitDavid is interested in a rental apartment that would supply him with $60,000 at the end of year 1, $65,000 at the end of year 2, $59,000 at the end of year 3, $63,000 at the end of year 4, and $61,000 at the end of year 5. Also, he will sell the apartment for $1m at the end of year 5. • How much should David pay for this investment if he wants to earn 10 percent on his investment? • If the acquisition costs are $800,000, would David buy this apartment? What is IRR? PV of Time of cash flow Cash flow cash flow, 10% 1 4. Total: 2.
- Case Study: James (28) and Nadine (27) is a young married couple, with 2 children, ages 4 and 2 years old. Both are working, earning a combined household income of Php 45,000.00 per month net of income taxes. They are living with relatives (rent-free), BUT would like to get their own house and lot some day. Checking the real estate market at present, they estimated that a home they wish to have would cost them Php 4M pesos in 2032 (after computing for cost adjustments). Typically, a 20% DP is required in getting a property, and the remaining balance payable in 15 years. They currently have a joint savings account of Php 600,000.00. The family expenses in a month is Php 25,000.00 with no debts. They want to prepare for this purchase, and buy a home 10 years from now. 1. How much is the DP and estimated monthly amortization for 15 years? (use Home Loan Calculator and select the interest rate of 6.28% fixed for 4-5 years.) 2. Where will they put their Php600K-savings to maximize the…Jose and Gabriela Perez, of Raleigh, NC, hope to sell their large home and net $380,000 and then retire to a smaller residence in a rural community that is valued at $150,000. After they sell the property, they plan to invest the $230,000 in equity and earn a 4 percent after-tax return. Approximately how much will this nest egg be worth in 5 years when they retire?Ana Maria's family would need $33,500 for annual living expenses if she should pass away. Her husband earns $15,100 per year and the family has additional yearly income of $12,000 from investments. If the prevailing interest rate is 13.3%, how much life insurance is needed to cover the family's income shortfall? (Round your answer to the nearest $1,000.) O $2,000 O $48,000 O $138,000 O $192,000
- Let’s learn more about Will and Stephanie and help them determine what the best insurance options are for them.Will recently decided that he wants to live off campus next school year. He’s going to start looking for apartments in the next week. In the meantime, he wants to consider whether he needs renter’s insurance or not. Here’s some information about Will: •Things he owns that he’ll have with him next year: oLaptop ($1,500) Stereo ($500) oRecreation equipment ($500) oFurniture ($250) oMiscellaneous ($250) •Coverage Optionso Policy 1 - $4,000 of coverage, $20 a month (10% discount if he prepays a full year) oPolicy 2 - $3,000 of coverage, $18 a month (No discount if he prepays a full year) oPolicy 3 - $2,000 of coverage, $15 a month (10% discount if he prepays a full year) How much coverage should Will look for to protect all of his assets? A.$1,500 B.$2,000 C.$3,000 D.$4,0001. Josiah, a 16 year old high school student, plans to use the $5,000 for a car down payment in two years. He would like to earn a good rate of return but needs to access his money exactly in two years. He prefers something with a lower risk as well. What is the best type of investment for Josiah? Why?2. Abigail is 22 years old and would like to save up for emergencies. She wants to be able to access her money as needed and incur a low risk. What is the best type of investment for Abigail? Why?Tom and Kyra Courtney are considering buying a house and are researching the potential costs. Their adjusted gross income is $144,000. The monthly mortgage payment for the house they want would be $1,450. The annual property taxes would be $9,400, and the homeowner’s insurance premium would cost them $876 per year. What is the front end ratio and will they be able to qualify?
- You have determined in your mind that you would like to have a businessof your own, although your father runs a family restaurant in yourlocal city. You have therefore, decided to have a medium size snackand cocktails bar which will accommodate the cruise ship passengerswho visit your city. You plan to keep the business for five yearsafter which you will sell it off to your brother John for $2,000,000and go off to do your Master’s Degree in the UK. Though you will beoccupying the establishment from your grandmother for free, you havedecided that you need to make some improvements to the property whichwill cost you $1,500,000. Additionally, you will spend $275,000 inbar stools, tables and decorations. If this space had been leased out,it would have fetched a lease rental of $75,000 per year. You willdepreciate the assets over 7 years using MACRS. You have determinedthat you would need an average cash balance of $15,000 and inventoryof $20,000 while Accounts payable should average…Maria and John have been married for 2 years and just learned that they are pregnant. 1. They have been renting a small apartment but decide to purchase a house. They find one that is selling for $525,000. They decide to make a 15% down payment They are considering 2 financing options: Option 1: a 4.0% interest 30-year mortgage: Option 2: a 3.25% interest 15-year mortgage: Answer the following questions showing all your work to reach each answer. A. Which option will result in a lower monthly payment if they take the full term of the mortgage? What will that monthly payment be? B. Which option will result in the most total interest if they take the full term of the mortgage? What will that total interest be? 2. They decide to shop for furnishings for the new house. They choose items that amount to $2400.00. The store has 2 fixed installment loan options for purchasing: Option 1: 20% down payment and financing at 7% simple interest per year for 2 years. Option 2: no down payment and…You have determined in your mind that you would like to have a businessof your own, although your father runs a family restaurant in yourlocal city. You have therefore, decided to have a medium size snackand cocktails bar which will accommodate the cruise ship passengerswho visit your city. You plan to keep the business for five yearsafter which you will sell it off to your brother John for $2,000,000and go off to do your Master’s Degree in the UK. Though you will beoccupying the establishment from your grandmother for free, you havedecided that you need to make some improvements to the property whichwill cost you $1,500,000. Additionally, you will spend $275,000 inbar stools, tables and decorations. If this space had been leased out,it would have fetched a lease rental of $75,000 per year. You willdepreciate the assets over 7 years using MACRS. You have determinedthat you would need an average cash balance of $15,000 and inventoryof $20,000 while Accounts payable should average…