You own a home with a market value of $100,000. you bought the home for $150,000 ten years ago. your houses assessed value is $85,000. your property tax rate is 3.5%. how much would you save per year if you moved to an area with a 2.7% property tax?
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- What should you do if you own a piece of land that you bought 5 years ago for $50,000. The tax rate is 30% and you can assume you have sufficient other income to take advantage of all tax effects. Your after-tax discount rate is 7%.a. You can sell the land today for $200,000. b. You believe the land will be worth $275,000 in five years because you expect a new shopping center to be built next to your land, so You can wait and sell the land at that time (in 5 years).Anita and Jim are considering a home equity loan to build a nice deck and patio in their back yard. They want to borrow $35,000 and are quoted an APR of 10%. If their marginal tax bracket is 24%, how much money can they save in taxes each year if capitalize on the tax-deductibility of interest paid on the home equity loan?7. The market value of Christine and Gene's home is $275,000. The assessed value is $230,000. The annual property tax rate is $17.50 per $1,000 of assessed value. a. What is the property tax on their home? b. How much do they pay monthly toward property taxes? Round your answer to the nearest cent.
- Your parents buy a new house to downsize. They pay $250,000 and are planning on paying it off in a 15 year loan with equal annual payments of $19,167. What interest rate do you evaluate them to be paying on the loan?You have just inherited $30,000 tax free from your grandfather's estate. You currently have: no savings or retirement; two small credit card balances of $1,200 and $1,650 at 14.99%; an auto loan of $15,350 at 3.69%; and a mortgage with an unpaid balance of $147,500 at 4.25%. Research Dave Ramsey's 7 Baby Steps. If you follow Dave's plan, what should you do with your money?b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly income. After researching the market, he determines he can obtain a 30-year home loan for 6.95% annual interest per year, compounded monthly. His monthly property tax payment will be approximately $150. What is the maximum amount he can pay for a house if his disposable monthly income is $2000? A person wants to buy a home. He has been advised A worker borrow $3500 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. Compare how much money the worker will save or lose on the transaction. An instrument can be bought for $10,000 cash or for d) $2000 down and payments of $750 per year for 15 years. What is the annual interest rate for the time payments? (Hint: you can assume interest rate between 4 and 5 % )
- Your parents purchased their home 15 years ago. At the time, the house cost them $400,000, but they put 15% down on the cost when they bought it. Your parents financed their purchase over 30 years, with 5.0% fixed rate loan, with monthly payments. What is their current balance of their loan?Annie bought a house in Bozeman in 1990 for $100,000 and sold it in 2010 for$300,000. The CPI in 1990 was 251 and in 2010 it was 270. If she had to pay a 20%tax on her gains, what was her after-tax real rate of return?O. 200%O. 160%O. 7.6%O. 152.4%A few years ago, Michael purchased a home for $298,000. Today the home is worth $440,000. His remaining mortgage balance is $108,000. Assuming Michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow?
- The Rodriquez family is determined to purchase a $250,000 home without incurring any debt. The family plans to save $2,500 a quarter for this purpose and expects to earn APR of 7.65 percent. How long will it be until the family can purchase a home? 13.45 years 14.11 years 14.85 years 59.39 years 56.43 years2. Jimmy and Mickey are interested to purchase their first boat. They have decided to borrow the boat's purchase price of $100,000. The income tax bracket is 28%. There are two choices: They can borrow money from the boat dealer at an interest rate of 8% or they could take a second mortgage of $100,000 on their home. The home loan rate is 9.2%. If they borrow from the boat dealer the interest will not be tax deductible, but the mortgage will be tax deductible. a) Calculate the after-tax cost of borrowing from the boat dealer. b) Calculate the after-tax cost of borrowing through the second mortgage. c) Which source is less costly for the family?You inherited a huge mango garden in Rajshahi from a distantly related great grandfather. It opens two choices for you: Choice (1): Farm for mango yourself and produce mango juice. You will invest 300,000BDT to set it up. But at every year end you will earn 600,000BDT (after deduction of all the taxes etc...) for the next 5 years. Choice (2): Lease out the garden to a company. It pays you 800,000BDT at the beginning of each year for the next 3 years. But after that due to hyper production over natural limits your trees will go barren for the next 2 years and production will become negligible. Which option should you choose? Assume that yearly inflation rate is 5%.