Efram and Sofia, both aged 24, are newlyweds. Their after-tax salaries are $55,000 and $49,000, respectively. They have been renting a flat since…

Efram and Sofia, both aged 24, are newlyweds. Their after-tax salaries are $55,000 and $49,000, respectively. They have been renting a flat since they started work but have decided to buy a house. Their decision has been made easier because Efram’s parents said that when they retire at age 65 in one year’s time they would withdraw $40,000 from their combined superannuation funds and give the money to Efram and Sofia to help them to buy a house. When they approached the bank for a loan they had to provide details of their income, expenses, assets and liabilities to the lending officer. The items provided for their personal balance sheet were: Assets Bank account $45,000 Furniture/personal effects $8,000 Managed investment fund $20,000 Cars $16,000 Superannuation — Efram $26,000 Superannuation — Sofia $21,000 Liabilities Credit cards $5,500 Car loans $3,000 They also advise the lending officer that their monthly commitments are: • rent $1,280 • car loans $290 They would prefer not to cash in their managed investment fund at present as the value has fallen by 8% over the last 2 months. They have instructed the fund manager to reinvest the distributions rather than receive them in cash. Their intention is to leave the investment to accumulate to meet the education expenses of the children they hope to have in the future. They anticipate paying off their credit card debt in full next month and they would also have paid off the car loans in the next 12 months. They also advise the lending officer that their current rate of household expenses (not including the rent and repayments) is about $2,400 per month. a. Prepare personal finance statements and ratio analysis for their current situation. b. Prepare personal finance statements and ratio analysis for their estimated situation when they receive the gift from Efram’s parents and purchase a house valued at $380,000 with repayments based on $2,200 per month. c. Discuss the impact on their savings and debt service ratio if Sofia was to cease working for a period of time to have children.

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more