answer all the questions

1. Why is it important to have a written lease? What should a rental contract include?
2. What are closing cost, and what items do they include? Who pays these costs, and when?
3. What steps can you take to establish a good credit rating?
4. Describe how revolving credit lines provide open account credit?
5. Explain some strategies for reducing the cost of student loan?
6. Briefly describe the basic feature of an installment loan
7. Explain the purpose of under writing. Why is it important to have enough life insurance?
8. Discuss the two most commonly used ways to determine a person’s life insurance needs?

One and only source is Personal Financial Planning by Billingsley/Gitman/Joehnk 14E
Answer the questions the minimum of 1 paragraph.

Expert Answer:

1. It is important to have a written lease because it sets forth the terms and conditions of the rental agreement between the landlord and the tenant. This can help to prevent misunderstandings and potential legal disputes. A rental contract should include information about the rental property, such as the address and the duration of the lease, as well as details about the rent, including the amount and the due date. It should also include information about the responsibilities of the landlord and the tenant, such as who is responsible for maintaining the property and who is responsible for paying for utilities.
2. Closing costs are fees associated with purchasing a home, such as mortgage origination fees, title insurance, and property taxes. These costs can vary depending on the location and the specific terms of the home purchase. The buyer is typically responsible for paying these costs, although the seller may contribute in some cases. Closing costs are typically paid at the time of closing, which is when the sale of the home is finalized.
3. To establish a good credit rating, you can take a number of steps. These include paying your bills on time, keeping your credit card balances low, and avoiding applying for too much credit at once. You can also consider getting a secured credit card, which is a type of credit card that is backed by a deposit that you make upfront. This can help you to build credit if you don’t have a lot of credit history.
4. Revolving credit lines provide open account credit, which means that you can borrow and repay the credit multiple times. This type of credit is typically provided through credit cards, which allow you to make purchases and pay off the balance over time. The credit limit is usually based on your creditworthiness, and you can typically borrow up to this limit. As you make payments, the credit becomes available to borrow again.
5. There are several strategies that you can use to reduce the cost of your student loans. One option is to consolidate your loans, which can help you to get a lower interest rate. You can also consider refinancing your loans, which can help you to get a lower interest rate and lower monthly payments. Another option is to enroll in an income-driven repayment plan, which can lower your monthly payments based on your income.
6. An installment loan is a type of loan that requires you to make regular payments, or installments, over a set period of time. These payments typically include interest, as well as a portion of the principal balance. Installment loans can be used for a variety of purposes, such as buying a car or paying for college. The basic features of an installment loan include the loan amount, the interest rate, the repayment term, and the payment schedule.
7. The purpose of underwriting is to assess the risk of providing a loan or insurance policy to a borrower or policyholder. This process involves evaluating the borrower’s or policyholder’s financial situation, including their credit history, income, and assets. Underwriting is important because it helps lenders and insurers to determine whether a borrower or policyholder is likely to default on their loan or fail to pay their premiums.
8. There are two commonly used methods for determining a person’s life insurance needs. The first method is called the human capital approach, which considers the financial contributions that a person makes to their family, such as their income and the value of the services they provide. The second method is called the income replacement approach, which considers the amount of income that a person’s family would need to maintain their standard of living if the person were to pass away. Both of these methods can be useful in determining the appropriate amount of life insurance coverage for a person.