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2. (TCO 2) What is the difference between a short-term capital gain and a long-term capital gain? (Points : 10) 3. (TCO 3) Carla Brown wants to know what price home she can afford. Her annual gross income is $45,000. She owes $1,050 per month on other debts and expects her property taxes and homeowners insurance to cost $250 per month. She knows she can get a 5.0%, 30year mortgage, so her mortgage payment factor is 5.37. She expects to make a 20% down payment. What is Michelle's affordable home purchase price? Assume a lender will use a 38% monthly gross income guideline. Round your answer to the nearest $100. (Points : 10) 4. (TCO 3) Identify two or three sources of consumer credit and discuss the advantages and disadvantages of each type selected. (Points : 10) 5. (TCO 5) Select two or three investment alternatives and describe how the influential factors of safety, risk, income, growth, and liquidity affect each investment alternative. (Points : 10) 6. (TCO 7) What is a will? Identify the primary types of wills. What are the ramifications of not having a will? (Points : 10) =================================================== BUSN 380 Week 1 Problem Set 1 FOR MORE CLASSES VISIT www.busn380study.com