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Wake Up and Smell the Coffee!

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Wake Up and Smell the Coffee!
Jack Kassab
ID #: 201204830

Khalil Yassine
ID#: 201201037

February 12, 2013
Jack Kassab
ID #: 201204830

Khalil Yassine
ID#: 201201037

February 12, 2013
Lebanese American University (LAU)
EMBA
Wake Up and Smell the Coffee!
Chapter 9 _ Time Value of Money
Lebanese American University (LAU)
EMBA
Wake Up and Smell the Coffee!
Chapter 9 _ Time Value of Money
Chapter 9 | Time Value of Money | | Time Value of Money |

| Time Value of Money | | Time Value of Money |

Chapter 9
Time Value of Money 1- Based on the information provided in Table 1, if the Halls continue making minimum payments on their outstanding debts, how much money will they have left over for all other expenses?

Income = $ 50.000 + $ 25.000 = $ 75.000
Net Income after Taxes = $ 75.000 – (0.28 * $75.000) = $ 54.000/year that is $ 4500/month
Credit card = 3% of card balance=3%*10,000 = $ 300 Car Loan | | Term years | 2 | Term months | 24 | Annual Interest Rate | 5.99% | Monthly Interest Rate | 0.50% | v | 0.995033126 | v term | 0.8874 | Annuity Val | 22.5652 | Loan Amount | $ 5,000.00 | Annual Payment | $ 2,658.97 | Car Monthly Payment | $ 221.58 | College Loan | | Term years | 2 | Term months | 24 | Annual Interest Rate | 5.25% | Monthly Interest Rate | 0.44% | v | 0.995644057 | v term | 0.9005 | Annuity Val | 22.7358 | Loan Amount | 12,000.00 | Annual Payment | $ 6,333.9 | Monthly Payment | $ 527.8 |

Monthly Rent = $ 1,200 Total Gross Income | $ 6,250.00 | Total Post Tax Income | $ 4,500.00 | | | Credit Card Payment | $ (300.00) | College Loan | $ (527.8) | Car Loan | $ (221.58) | | | Rent | $ (1,200.00) | | | Net Monthly Income | $ 2250.57 |

So what is left from their income for all other expense after minimum payment is $2250.57

2- How much money will Laura and Marty have to deposit each month ( beginning one month after the child is born and ending on his or her
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