layla has owned her home for 12 years and expects to live in it for 5 more years 1551658

Information Use the following information to answer questions 1-3: Layla has owned her home for 12 years and expects to live in it for 5 more years. She originally borrowed $200,000 at 5% for 30 years to buy the home. She still owes $130,000 on the loan. Interest rates have fallen to 4%, and Layla is reconsidering refinancing the loan for 15 years. She would have to pay 3 points on the new loan with no repayment on the current loan. Question 1 What is Layla’s current monthly payment? Question 2 Calculate the monthly payment on the new loan Question 3 Run the numbers worksheet, “When You Should Refinance Your mortgage” on page 278. Show the numbers at each line. Use 3% for the investment return. Advise Layla on whether she should refinance. Question 4 Jim’s house was damaged when lightening struck his roof. The cost to fix the home will be $30,000. He carries an HO-3 policy with a $500 deductible. If the home is insured for $200,000 and the replacement value is $180,000, how much will Jim’s reimbursement from the insurance company be? Question 5 Victor has a $100,000 participating cash-value policy written on his life. The policy accumulated $6,700 in cash value. Victor borrowed $4,700 of this value. The policy also accumulated unpaid dividends of $2,000. Yesterday Victor paid his premium of $1,000 for the coming year. What is his death benefit from this policy if he dies today? Information Use the following information to answer questions 6 and 7: Jen caused a 3 car accident near her home in Akron, Ohio. She has the Ohio minimum liability coverage with no collision or comprehensive coverage. Jason, the driver of one of the other cars, suffered injuries leading to $42,000 in medical bills. No other injuries were suffered. The damage to Jen’s car was $2,000 and she caused $22,000 in damage to the other two cars. Question 6 How much of the amount of the bodily injury and property damage will be covered by the insurance…