John has assets of: market value of home $120,000; 25,000 in corporate stock; a
ID: 2668405 • Letter: J
Question
John has assets of: market value of home $120,000; 25,000 in corporate stock; a treasury bill with 1,000 face value to be received at the end of the month, for which the current market value is 983; a bank deposit account of 6,000; miscellaneous items valued at 35,000. only outstanding liability is a mortgage on his house with a balance of $40,000. it is now the end of the month and he just received $6,000 salary, along with the income from the maturing T-bill and interest on his bank deposits, which paid an annualized interest rate of 2% (2/12 percent per month). his mortgage payment was 1,500 of which 500 went towards the principal. other expenses were 4,000. he planned to make an additional mortgage payment for the month, all which would go to paying down the principal on the loan. his daughter wants to go to the Bahamas for 1,800.what would be his net worth if he funded his daughter's trip and made the additional mortgage payment?
Explanation / Answer
John has assets of:
market value of home $120,000; $120,000 +
25,000 in corporate stock; $25,000 +
a treasury bill with 1,000 face value to be received at the end of the month, for which the current market value is 983; (1001.66 - 983 = $28.66 +)
a bank deposit account of 6,000 x 1.0166 = 6099.6 = approx. $6100 +
miscellaneous items valued at 35,000. $35,000 +
only outstanding liability is a mortgage on his house with a balance of $40,000. -$40,000
it is now the end of the month and he just received + $6,000 salary,
along with the income from the maturing T-bill and interest on his bank deposits, which paid an annualized interest rate of 2% (2/12 percent per month). his mortgage payment was 1,500 of which 500 went towards the principal. -$1,500 +$500 = -$1,000
other expenses were -$4,000. he planned to make an additional mortgage payment for the month, all which would go to paying down the principal on the loan.
his daughter wants to go to the Bahamas for 1,800.
what would be his net worth if he funded his daughter's trip and made the additional mortgage payment?
120,000 + 25,000 + 28.66 + 6,100 + 35,000 + 6,000 = 192,128.66
MINUS expenses 40,000 + 1,000 + 4,000 + 1,000 = 46,000
NET WORTH = 192,128.66 - 46,000 =
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