Present Value of an Annuity Carrie and Miranda Earn the Same

question 154

Essay

Present Value of an Annuity Carrie and Miranda earn the same salary.However,Miranda has been far more financially responsible.She pays her bills on time and pays off her credit card debt quickly.Carrie had been less financially responsible.She often buys too many shoes and has allowed her credit card balance to balloon.If she is short on cash for a month,she simply decides to not even pay the minimum balance due on her credit card.Now they both are looking to buy apartments.Miranda decides she can afford to make $3,500 payments,but Carrie can only make $1,500 payments and pay off her credit card debt,too.Miranda qualifies for a 6 percent,30-year mortgage,but because of her bad credit rating Carrie will be charged 7.5 percent on a 30-year mortgage.Both will put 20 percent down.How is Carrie's bad credit going to impact her apartment search?

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Definitions:

Delete Sheet

The action of removing an entire worksheet or sheet from a spreadsheet or workbook application.

Nonadjacent Cells

Cells in a spreadsheet that are not next to each other but are selected or operated on together.

CTRL

Control key, a modifier key on a computer keyboard that, when pressed in conjunction with another key, performs a special operation.

Column Width

The horizontal measure of a column in a table or spreadsheet, often adjustable to accommodate content.