2 Questions From A Total Newbie....
My apologies if this is in the wrong forum.
2 questions I have that I would like some of your expert advice on dealing with money & banking:
1) If my company spends $100,000 on investment on a commercial property + the equipment in it, and we have $30,000 to put down, and $70,000 we would need to borrow, would we be considered a net borrower or lender from a banking point of view? And while this may seem obvious, and maybe I am over thinking this, but what is the amount of our surplus or deficit as the bank sees it?
2) We have a client who earns $45,000 a year, and interest and dividend income of $5,000. She just put down $8,000 on a newly constructed home, and lends $4,000 in financial markets. If she spends the remainder of her income on consumption, what is her saving? Is she considered a net lender or borrower? and how do I calculate what her consumption is?
Thanks in advance for any advice!!
Are you from the US?
I have never herd the term net borrower/lender.
as far as number 2. I but there is a calculator on line as tax and other factor con into play.
What is a net borrower / lender?