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# Excel coursework Essay Example

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## Excel coursework

Or 3.25 times joint salary in a joint mortgage application, while currently most banks will lend up to 75% of the property price on their best rate with penalties for higher percentages. The penalty will be 1.5%age points if borrowing is up to 90% of the property value. Adam and Eve are getting married and decided to buy a flat to move into once they do. You have been given the following data:Mortgage rates remains very low nowadays, the lowest rate now prevails is 1.5% for a two year and for five year fix it is below 3% The Bank of England has been keeping at 0.5% from March 2009 and they estimate that it would not have risen.Based on Eve’s salary of £42,500 p., she would get £106,250. So the total amount is £228,750. But when they jointly apply for mortgage they would get (£49,000+£42,500)*3.25=£297,375 which is £68,625 more than what they get individually together. This loan of £297,375 is 90% of £330,416 ie.So if they purchase around £330,000, they would avoid the penalty of 1.5% For this situation they can prefer minimum 1 bed room house which costs around £330,000. If Adam sells his present flat @£185,000 and subtracting his mortgage amount of £124,000, he would have £61,000 in his hand. The savings of them are £45,000. If we add savings, the total amount would be £106,000. So £106,000+£330,000=£436,000 they can afford for purchasing 2 bed room house. If they apply for 25 year mortgage, the best deal to buy is 2 bedroom flat since after their marriage, they would have children and they also need separate bed rooms. This would ease the situation when the children are growing. On the other hand if they prefer 3 bedroom, £575,000 would become more burden for them to repay. The best deal is to buy 2 bedroom house.Construction of the factory and all additional infrastructure will take one year. Sales are expected to be £14million in year 2 (first year of sales), and grow 10% in each of the subsequent three years after which they will stabilise;c) Using NPV and IRR, and assuming My Velo expects to run this factory for 10 years, at which point it will decide whether to sell it or continue operating, make a recommendation on whether My Velo should go ahead with the investment, including on whether it should sell or continue to operate the

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• Pages: 8 (2000 words)
• Document Type: Essay
• Subject: Statistics