Before you upload your file, ensure your name appears on the...

Before you upload your file, ensure your name appears on the top of every page of your document. 1. Find an advertisement for a house or condominium that costs less than $150 000. Using either the formula or your graphing calculator, determine the monthly payments. The bank offers you a rate of 5.7%/a compounded monthly and amortized over 25 years as long as you make a down payment of at least 5%. 2. Calculate and add up all of the initial estimated costs involved in purchasing a new home (i.e., moving truck, land transfer taxes, lawyer fees, etc.) 3. If you were 22 years old, attending your final year of college, and working a part time job earning $1200 per month, would you rent or buy? Explain your reasoning (consider down payment, risk of repairs needed, your age, etc.)

Transcript

00:01 Hello everyone in this problem we are given with an early income as early income as $40 ,000 and with this we can calculate monthly income so monthly income will be $40 ,000 divided by 12 so simplifying this we get this value as value will be approximately equal to 3 ,333 .33.

00:31 $3 .33.

00:32 Also we are given with the expenditures in the month.

00:37 So the expenditures that are done by the person as rent for rent it is $100 per month and for insurance.

00:52 It is $225 semi -annually.

01:00 So for monthly it will be $225 by 6.

01:06 So it will be $37 .37 .5.

01:15 Also for the car payment, for the car payment it is given as $315 per month.

01:26 Also the car expenses is given as $1 ,000 per year.

01:34 So for a month, it will be thousand divided by 12.

01:40 So it will be approximately $83 .33.

01:44 Also, we are given with the rrsp value as for our or for our for sp it is $50 per month and for entertainment it is $50 per week so for monthly it will be four times of 50 so it will be $200 per month and for cell phone it is given as $75 per month and for food it is given as $500 per month.

02:30 For this information in the first part we need to calculate create the budget.

02:36 So let us create the budget.

02:37 So savings will be equal to 3 ,33 .33.

02:44 That is the income for a month minus the expenses in a month.

02:48 So it will be 800 plus 37 .5 plus 31 .5 plus 83 .33 plus 50 plus 200 plus 700 plus 75 plus 75 plus.

03:01 500 so subtracting all these expenditures from the income we get an value of 2272 .5 so the savings here is 1 ,272 .5 dollars now let us move on to the next part of the question where we need to modify the budget by including the savings plan of hundred dollars per week so here in the b part we are saving hundred dollars per week so for month it will be $400.

03:48 So we know that the monthly income as $3333 .333 and the expenditure is without the saving the expenditure is $2 ,60 .83.

04:19 So with the savings the expenditure will be.

04:38 So it will be now to this expenditure we add this $400.

04:42 So it will be.

04:43 $2 ,460 .83...

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