Betty has saved $60,000 for a down payment on a house

| June 2, 2016

Question
Betty has saved $60,000 for a down payment on a house. She is now actively looking for her dream house and anticipates making an offer on a home with the next two months. If the offer is accepted, it will take up to three additional months to close on the house. Betty will need to deposit about $1,000 in an escrow account as good faith money when she makes the offer. The rest of the down payment is made at closing. The best place for Betty to deposit her funds now is

A. The stock market

B. A Municipal bond

C. a six-month certificate of deposit (CD)

D. $1,000 in a two month certificate of deposit (CD) and the remainder in a six month CD

E. a money market mutual fund

Assume all residential real estate improvements are capitalized over 27 years. Five years ago, Kelly purchased a home in Queens, New York to rent to her college roommate, Linda. Things had gone well with this investment until this year when Linda insisted several small problems be addresses. Because Kelly wanted to keep Linda as a tenant, she told Linda to make arrangements to have the problems corrected and to send her the bill. Kelly was surprised when the bill came to $23,100 which included : $400 to repair outside lighting, $1,200 to repair the bathroom floor tiles, $15,500 to replace the sewer line. $4,500 to paint the house, and $1,500 to replace leaking faucets. When Kelly confronted Linda about these costs, Linda pointed out that all these costs would reduce Kelly’s tax bill.Based on the above information, how much will Kelly be able to deduct as a result of these costs?

A. $856

B. $3,841

C. $7,019

D. $8,174

E. $22,600

Diane has $85,000 to invest. She wants to invest in relatively safe securities. Diane believes interest rates will decrease and stabilize at a lower level over the next 5-10 years. She should invest in

A. Treasury Bills

B. Long term treasury notes or bonds

C. Equity

D. B-rates corporate bonds

E. Commercial paper

Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now