Question
Personal FInance Questions for Exam Part 4 QUESTION 7 Dr. Houselover has an annual income of $129,000. She has monthly payments for auto loan ($300),
Personal FInance Questions for Exam Part 4
QUESTION 7
Dr. Houselover has an annual income of $129,000. She has monthly payments for auto loan ($300), student loan ($250), and credit card payments ($400). Using a 35 percent back-end ration, what are the monthly mortgage payments (including taxes and insurance) she can afford?
QUESTION 8
Jack earned 6.5% last year on a $7500 investment in taxable bonds. If the applicable tax rate was 25%, what is Jack's after-tax profit?
QUESTION 9
Jules is deciding between a corporate (taxable) bond which has annual return of 5.9% and municipal (tax-free) bond that has an annual return of 4.3%. If Jules is in the 25% tax bracket, which bond should she choose?
INFORMATION FOR QUESTION 10 - 13
Five years ago, in December 2007, Emily invested $1,000 by buying Apple Inc. shares at the price of $183.45 per share. She decided to continue investing $1,000 every December because she believes in "dollar cost averaging" and likes Apple gadgets. She paid $88.26 per share in 2008, $185.50 per share in 2009, $94.00 per share in 2010, and $196.43 per share in 2011. Yesterday, she sold 5 shares for $320.15 per share to pay for her holoday trip.
QUESTION 10
What was the Average Price paid by Emily?
QUESTION 11
What were the proceeds from Emily's sale of the five shares?
QUESTION 12
What is the total cost basis for Emily's five shares?
QUESTION 13
What is Emily's gain?
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