Question: A B c D E F G H I J K L M [ c) Today] the clients have a combined total of $4,300.00 of

A B c D E F G H I J K L M [ c) Today] the clients
A B c D E F G H I J K L M [ c) Today] the clients have a combined total of $4,300.00 of disposable income to service their debt at each loan repayment period. Assuming, their income increases by the current rate of annual inflation , will they be able to afford the periodic loan repayment needed for the loan? If not, by what nominal annual percentage will they have to grow their disposable income available to service the loan in the future when they buy their house? If their future income is greater than the loan repayment required, by what percentage is their income greater than the loan payment required? CPI as of June 2024 3.80% Name Value -4300 36 (3 years of inflation x 12 months) $4,818.37 =FV( ,B14,,B12) In 3 years time, Bob and Jill will have a combined total disposable income of $4583.35, as a result of inflation. At $4809.06, Bob and Jill will be able to afford the periodic loan repayments needed for the loan of $4583.35, with $225.71 of disposable income to service their debt at each loan repayment remaining

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!