Question
The Case Approach to Financial Planning: Bridging the Gap between Theory and Practice, Fourth Edition (Revised) (4th Edition): Chapter 14, Case 13 The Adora and
The Case Approach to Financial Planning: Bridging the Gap between Theory and Practice, Fourth Edition (Revised) (4th Edition): Chapter 14, Case 13 The Adora and Jorge Tun Case Answers. Please help with calculating PITI and mortgage outstanding balance. Mortgage principle & Interest: 15,932 The house is insured for $141,000. The replacement value of the home equals the current market value Liability coverage is equal to $100,000. Deductible information: 1 percent deductible. Inflation has been averaging 3.40 percent annually; you feel this rate of inflation will continue into the future. Money market mutual funds and short-term certificates of deposit currently yield 2.25 percent. The thirty-year fixed rate mortgage interest rate is 7.00 percent. The twenty-year fixed rate mortgage interest rate is 6.25 percent. Closing costs for a refinanced mortgage are 2 percent of the amount borrowed. The current interest rate on home equity lines of credit is 7.25 percent. The typical draw period is ten years.
Assets Amount Liabilities Amount Cash $9,250 $15,250 $250 Visa Credit Card" $500 MasterCard Credit Card12 $100,000 Mortgage $600 Automobile Loan15 Checking Account Savings Account EE Savings Bonds14 Primary Residence ??? $22,000 $199,000 Other $0 Automobile #1 (new car) $22,000 Automobile #216 $9,000 Furniture and Household Goods $11,000 Personal Property $5,000 401(k) Plan Assets (Adora) $160,000 401(k) Plan Assets (Jorge) $19,000 TOTAL ASSETS ??? TOTAL LIABILITIES NET WORTH Note: ??? indicates the need for a calculation by the financial planner. ??? ??? Assets Amount Liabilities Amount Cash $9,250 $15,250 $250 Visa Credit Card" $500 MasterCard Credit Card12 $100,000 Mortgage $600 Automobile Loan15 Checking Account Savings Account EE Savings Bonds14 Primary Residence ??? $22,000 $199,000 Other $0 Automobile #1 (new car) $22,000 Automobile #216 $9,000 Furniture and Household Goods $11,000 Personal Property $5,000 401(k) Plan Assets (Adora) $160,000 401(k) Plan Assets (Jorge) $19,000 TOTAL ASSETS ??? TOTAL LIABILITIES NET WORTH Note: ??? indicates the need for a calculation by the financial planner
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