1. James (aged 33) and his wife, Jennie (aged 30), have just purchased a newcondominium for $550,000. They plan to take a 80% mortgage loan of $440,000 forthe next 35 years.Raj has the following assets:BMW car$65,000stocks on (stock exchange of America)$180,000group insurance by his employers$400,000personal insurance$250,000James has a hire purchase loan on the BMW car amounting to $40,000. Should hepre-decease Jennie, James Plans to provide $36,000 per annum for Jennie till shereaches age 70. James would also like to create an Emergency Buffer fund of $50,000and Final Expenses fund of $35,000. Using the CAPITAL LIQUIDATION method,compute the amount of additional life insurance that James needs to purchase.Assume a discount rate of 4% per annum and that income is received at the end of theperiod.www2. In the example above; as life mortality is uncertain, James would like to provide forhis wife, Jennie, an income of $36,000 for an indefinite time period. Using theCAPITAL PRESERVATION method, compute the amount of additional lifeinsurance that James needs to purchase. Assume a discount rate of 4% per annum andthat income is received at the end of the period.

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1. James (aged 33) and his wife, Jennie (aged 30), have just purchased a new condominium for $550,000. They plan to take a 80% mortgage loan of $440,000 for the next 35 years. Raj has the following assets: BMW car stocks on (stock exchange of America) group insurance by his employers personal insurance $65,000 $180,000 $400,000 $250,000

1. James (aged 33) and his wife, Jennie (aged 30), have just purchased a new condominium for $550,000. They plan to take a 80% mortgage loan of $440,000 for the next 35 years. Raj has the following assets: BMW car stocks on (stock exchange of America) group insurance by his employers personal insurance $65,000 $180,000 $400,000 $250,000

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter14: Planning For Retirement

Section: Chapter Questions

Problem 2FPE

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The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The family plans to save $2,500 a quarter for this purpose and expects to earn APR of 7.65 percent. How long will it be until the family can purchase a home? 13.45 years 14.11 years 14.85 years 59.39 years 56.43 years
1. James (aged 33) and his wife, Jennie (aged 30), have just purchased a new condominium for $550,000. They plan to take a 80% mortgage loan of $440,000 for the next 35 years. Raj has the following assets: BMW car $65,000 stocks on (stock exchange of America) $180,000 group insurance by his employers $400,000 personal insurance $250,000 James has a hire purchase loan on the BMW car amounting to $40,000. Should he pre-decease Jennie, James Plans to provide $36,000 per annum for Jennie till she reaches age 70. James would also like to create an Emergency Buffer fund of $50,000 and Final Expenses fund of RM35,000. Using the CAPITAL LIQUIDATION method, compute the amount of additional life insurance that James needs to purchase. Assume a discount rate of 4% per annum and that income is received at the end of the period. 2. In the example above; as life mortality is uncertain, James would like to provide for his wife, Jennie, an income of $36,000 for an indefinite time period. Using the…
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