Description of this paper

1. Walter and Marcie Jensen of Atlanta, Georgia, b...

Description

Solution


Question

1. Walter and Marcie Jensen of Atlanta, Georgia, both of whom are in their late 20s, currently are renting an unfurnished two-bedroom apartment for $880 per month, plus $130 for utilities and $34 for insurance. They have found a condominium they can buy for $170,000 with a 20 percent down payment and a 30-year, 5 percent mortgage. Principal and interest payments are estimated at $730 per month, with property taxes amounting to $150 per month and a homeowner's insurance premium of $720 per year. Closing costs are estimated at $3200. The monthly home-owners association fee is $275, and utility costs are estimated at $160 per month. The Jensens have a combined income of $57,000 per year, with take-home pay of $4100 per month. They are in the 15 percent tax bracket, pay $225 per month on an installment loan (ten payments left), and have $39,000 in savings and investments outside of their retirement accounts."

 

Paper#13657 | Written in 18-Jul-2015

Price : $25
SiteLock