BUSN 380 help Making Decisions/uophelp.com BUSN 380 help Making Decisions/uophelp.com | Page 7

cost $250 per month. She knows she can get a 5.0%, 30-year mortgage,
so her mortgage payment factor is 5.37. She expects to make a 20%
down payment. What is Michelle's affordable home purchase price?
Assume a lender will use a 38% monthly gross income guideline. Round
your answer to the nearest $100. (Points : 10)
4. (TCO 3) Identify two or three sources of consumer credit and discuss
the advantages and
disadvantages of each type selected. (Points : 10)
5. (TCO 5) Select two or three investment alternatives and describe how
the influential factors of safety, risk, income, growth, and liquidity affect
each investment alternative. (Points : 10)
6. (TCO 7) What is a will? Identify the primary types of wills. What are
the ramifications of not having a will? (Points : 10)
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BUSN 380 Week 1 Problem Set 1
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TCO 1 Time value of money relationships & applications; opportunity
costs; personal financial statements -Problem Set 1
1. Ben Collins plans to buy a house for $65,000. If that real estate
property is expected to increase in value 5 percent each year, what
would its approximate value be seven years from now?
2. At an annual interest rate of five percent, how long would it take for
your savings to double?