0 answer

# Kim and Dan Bergholt are both government workers

###### Question:

Kim and Dan Bergholt are both government workers. They are considering purchasing a home in the Washington D.C. area for about $280,000. They estimate monthly expenses for utilities at$220, maintenance at $100, property taxes at$380, and home insurance payments at $50. Their only debt consists of car loans requiring a monthly payment of$350.
Kim's gross income is $50,000/year and Dan's is$35,000/year. They have saved about $60,000 in a money market fund on which they earned$5,840 last year (included in the $60,000). They plan to use most of this for a 20% down payment and closing costs. A lender is offering 30-year variable rate loans with an initial interest rate of 7% given a 20% down payment and closing costs equal to$5,400.
Before making a purchase offer and applying for this loan, they would like to have some idea whether they might qualify.
Estimate the affordable mortgage and the affordable purchase price for the Bergholts.
Suppose they do qualify; what other factors might they consider before purchasing and taking out a home mortgage?
What future changes might present problems for the Bergholts?
The real estate agent tells the Bergholts that if they don't care to purchase, they might consider renting. The rental option would cost $1,400/month plus utilities estimated at$220 and renter's insurance of $25/month. The Bergholts believe that neither of them is likely to be transferred to another location within the next five years. After that, Dan perceives that he might move out of government service into the private sector. Assuming they remain in the same place for the next five years, the Bergholts would like to know if it is better to buy or rent the home. They expect that the price of housing and rents will rise at an annual rate of 3% over the next five years. They expect to earn an annual rate of 4% on the money market fund. After federal, state, and local taxes, they get to keep only 55% of a marginal dollar of earnings. Estimate whether it is financially more attractive for the Bergholts to rent or to purchase the home over a five-year holding period. (Assuming the contract interest rate of 8%, monthly interest payments over the five-year period would total$87,574.)
1 answer
##### Please who have a unique and special idea's for computer engineering senior project????
Please who have a unique and special idea's for computer engineering senior project????...
1 answer
##### Can you provide an example of a company with a blue ocean strategy? Is there are...
Can you provide an example of a company with a blue ocean strategy? Is there are a red ocean example?...
1 answer
##### I need help doing problem number 5 listed below. If someone could show the work required...
I need help doing problem number 5 listed below. If someone could show the work required for this problem it would be a great help! Below is a list of solutions you will need for the mini-prep. Make 5mL of each solution as a team and store each in a 15mL Falcon tube. Store solution 1 and 70% ethanol...
1 answer
##### 4. (a) A function f has first derivative f (r) - and second derivative f"(z) It is also known that the function f h...
4. (a) A function f has first derivative f (r) - and second derivative f"(z) It is also known that the function f has r-intercept at (-3,0), and a y-intercept at (0,0) (i) Find all critical points, and use them to identify the intervals over which you will examine the behaviour of the first deri...
1 answer
##### (C) You want to determine if there are additional genes associated with deatness. You have more...
(C) You want to determine if there are additional genes associated with deatness. You have more rabbits who are true breeding for deafness (the rabbit lines labeled D3-Db the table below). You mate them with deaf individuals that are homozygous for the recessive alleles of genes aa (rabbit line D1) ...
1 answer
##### (4,9,-5) Evaluate the integral | ydx+x dy +7 dz by finding parametric equations for the line...
(4,9,-5) Evaluate the integral | ydx+x dy +7 dz by finding parametric equations for the line segment from (3,2,2) to (4,9. – 5) and evaluating the line integral of F=yi + xj + 7k along the segment. Since F is conservative, the integral is independent of the path. (3.2.2) (4.9.-5) | ydx + x dy+...
1 answer
##### Score: 0 of 1 pt 9.4.24-T Consider the following hypotheses. Ho:p 50.14 Hy:p>0.14 Given that p=0.175,...
Score: 0 of 1 pt 9.4.24-T Consider the following hypotheses. Ho:p 50.14 Hy:p>0.14 Given that p=0.175, n = 120, and a = 0.01, answer the following questions. a. What conclusion should be drawn? b. Determine the p-value for this test. a. Determine the critical value(s) of the test statistic. Za (Us...
1 answer
##### 2.1. Obtain process response curve in time domain for a step input of a magnitude of...
2.1. Obtain process response curve in time domain for a step input of a magnitude of 0.5. (6) 2.2. Plot the response curves in a single figure. (use EXCEL, submit the EXCEL file too) (20) 2.3. Explain how the values of the transfer function zeros affect the shape of the response curves? (4) A proce...
1 answer
##### 7 Which of the following is NOT one of the six steps in the hypothesis testing...
7 Which of the following is NOT one of the six steps in the hypothesis testing procedure? (2.0%) A Formulate a decision rule B State the null and alternate hypotheses Select a level for Die Identify the test statistic A farmer who grows organic corn is at risk of having his crop contaminated by gene...
1 answer
##### A friend of mine is giving a dinner party. His current wine supply includes 11 bottles...
A friend of mine is giving a dinner party. His current wine supply includes 11 bottles of zinfandel, 9 of merlot, and 8 of cabernet, all from different wineries. He will serve five bottles of the wines during dinner in a particular order. (a) How many distinct sequences are there of serving any five...
1 answer
##### 7. Calculate AH for the reaction 2 KCIO: (s) → 2 KCl (s) + 3 Oz...
7. Calculate AH for the reaction 2 KCIO: (s) → 2 KCl (s) + 3 Oz (9) AH of KCIOS (s) = -397.7 kJ/mol AH", of KCI (s) = -436.5 kJ/mol...