3 years later at 25 years old, George succeeded with his investment goals. However, his plans have...
Question:
3 years later at 25 years old, George succeeded with his investment goals. However, his plans have changed due to meeting the love of his life, Stephanie Gerrard. They decided to purchase a property together. Like George, Stephanie also invested successfully. Together, they have combined cash of $220 000, and they would like to allocate $130 000 as deposit for their first home, with the rest of the money gradually invested into bonds and shares. George and Stephanie have decided to purchase a house in Epping to live in for $1 300 000. In order to fund the purchase, George has arranged an 90% loan from the bank, which they will pay off on a monthly basis over a 30-year period. The interest rate on the loan is 2.55% p.a.
What will George's monthly repayments be on his loan once the property is settled and complete?
Show formula, variables, calculations and a concluding statement in your response.
Stephanie suggests to George that they can reduce the amount of interest they pay over the life of the loan by simply making his monthly repayments at the start of each month rather than at the end. Is Stephanie correct? Explain why/why not using calculations to prove your response.
Show formula, variables, calculations and a concluding statement in your response.
George and Stephanie decided that they can afford to contribute $2 200 per month into BetaShares Diversified All Growth ETF (DHHF), a globally diversified index exchange traded fund.
Assuming contributions of $2 200 per month do not change over the next 35 years, and the fund has the capacity to grow at 8.50% p.a. compounded monthly, how much will George and Stephanie's index funds be worth at 60 years old?
Show formula, variables, calculations and a concluding statement in your response.
Based on historical data, George expects the value of their property to grow by 4.5% p.a. What will the value of their entire portfolio (property and index fund combined) be worth when George reaches 60 years old?
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe